Saturday, March 6, 2021

In revival plan for MTNL and BSNL, cabinet announces merger of the two

New Delhi, October 23: The Union Cabinet on Wednesday decided to merge state-owned telecom firms Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL).
Telecom minister Ravi Shankar Prasad made the announcement and assured that neither MTNL or BSNL are being closed, nor being disinvested, nor being hired to any third party. “BSNL and MTNL will be merged and the government will put in Rs 29,937 crore for revival of the companies,” he said.
The central government’s revival package for the two firms includes raising of Rs 15,000 crore sovereign bonds and monetising Rs 38,000 crore of assets in next four years. During the process of the merger, MTNL will act as a subsidiary of BSNL.
Prasad said voluntary retirement scheme (VRS) will be offered to employees to cut cost.
Both BSNL and MTNL are loss-making companies.BSNL has a staff 1.76 lakh on its rolls and the company has posted a net loss of Rs 13,804 crore in fiscal 2018-19.
(Courtesy: HT)