BSNL & MTNL Merger Soon, Cabinet Approves Four-way Revival Plan
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BSNL & MTNL Merger Soon, Cabinet Approves Four-way Revival Plan

bsnl-and-mtnl:- Next Big Brand
Pritish raj
Written by Pritish raj
[email protected] | Noida | Published on: October-23-2019 06:30 PM
  • Telecom minister Ravi Shankar Prasad, announcing a four-step revival plan for the two companies, said the government wants to make the two state-owned telecom companies more competitive by placing Rs 29,937 crore in.
  • MTNL will be paired with BSNL as part of the revival kit. Until that happens, MTNL will operate as a BSNL subsidiary. MTNL is listed but has already eroded its net value. BSNL has not been listed.

To revive loss-making telecom PSUs BSNL and MTNL, today’s government decided to merge the two ailing companies as part of a turnaround package that includes increasing employee sovereign bonds, monetizing capital and voluntary retirement scheme (VRS).

MTNL will be paired with BSNL as part of the revival kit. Until that happens, MTNL will operate as a BSNL subsidiary. MTNL is listed but has already eroded its net value. BSNL has not been listed.

Telecom minister Ravi Shankar Prasad, announcing a four-step revival plan for the two companies, said the government wants to make the two state-owned telecom companies more competitive by placing Rs 29,937 crore in.

Prasad said the government will use sovereign bonds to collect Rs 15,000 crore. “In four years, assets worth Rs 38,000 will be monetized,” Prasad said.
Prasad also announced the allocation of the 4 G spectrum to BSNL and MTNL. They would be allocated the 4 G spectrum at prices for 2016 and administratively.

He also said the government will be giving workers in both companies an attractive VRS kit.

To give an example of the VRS package, Prasad said that any worker over the age of 53 and a half who opts for the VRS will earn 125 percent pay, pension, and gratuity remuneration up to the age of 60.

BSNL, which is yet to pay employee salaries, has a monthly bill of Rs 850 crore on this count and has a staff 1.76 lakh on its roll. BSNL has an estimated loss of Rs 14,000 crore in the 2019 fiscal.

Two weeks back, Employee unions of Mahanagar Telecom Nigam (MTNL) and Bharat Sanchar Nigam (BSNL) have threatened a national strike after Diwali if their wages are not paid, said the Times of India.

Union leaders for both the telecom companies in the public sector said wages were pending for August and September. “Is it just before Diwali this fair? When our problems aren’t fixed early, we won’t be sitting idle.

We are even going to take our protest to the Office of the Prime Minister (PMO),’ the newspapers quoted as saying Dharamraj Singh, convenor of the MTNL unions and associations forum. BSNL union leader K Sebastian said they’d meet the MTNL and said they’d like to “understand the government’s plans to revive our companies.” The report quoted government sources as saying that the Ministry of Telecom was working on a plan that had been discussed with the PMO.

Scroll.in announced that on October 10 and October 16, employees of both companies would stage lunch-hour demonstrations in Mumbai and New Delhi.

About the author

Pritish raj

Pritish raj

Pritish Raj is a content writer at Next Big Brand. Hailing from the diversified state of Bihar, he is an engineer by education who chooses the way of poetry, photography, and writing to kick off his career.
Highly enthusiastic about brands and startups, he aims to be a travel content creator.

9113327413 | A-73, Hackerspace, Noida sector- 2 Noida UP 201301

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