“BSNL and MTNL are strategic assets of India. Neither they will be closed nor being disinvested. We want to make them competitive and bring professionalism." - Telecom Minister
The Union Cabinet has approved the merger of two state-owned telecom companies BSNL and MTNL, where MTNL will act as a subsidiary of BSNL. The cabinet also laid out a revival plan that includes raising sovereign bonds, monetising assets and voluntary retirement scheme (VRS) for employees.
Telecom Minister Ravi Shankar Prasad said, “Government wants to make the two state-owned telecom companies more competitive by putting in Rs 29,937 crore.” In this he added, “ The government will raise Rs 15,000 crore through sovereign bonds and assets worth Rs 38,000 crore will be monetised in four years.” With this 4G spectrum will also be allocated to BSNL and MTNL.
Ravi Prasad has also urged the employees of both these PSUs to work hard and help the government in making these organisations profitable. BSNL, has an employee base of over 1.7 Lakh, and has been struggling to pay timely salaries to it’s employees for some time. MTNL has around 26000 employees. With a combined workforce of about 2 Lakh, around 50 % of these would be eligible for VRS.
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