MTNL, BSNL to be merged; Cabinet approves revival plan
NEW DELHI, OCT 23:
The government on Wednesday decided to merge loss-making telecom firms MTNL and BSNL as part of a revival package that includes raising sovereign bonds, monetising assets and voluntary retirement scheme (VRS) for employees.
Briefing reporters on decisions taken by the Cabinet headed by Prime Minister Narendra Modi, telecom minister Ravi Shankar Prasad said the government will put in Rs 29,937 crore for revival of the two state-owned telecom companies.
The revival package includes raising of Rs 15,000 crore sovereign bonds and monetising Rs 38,000 crore of assets in next four years.
Also, Cabinet has decided to offer an attractive Voluntary Retirement plan to the employees of BSNL and MTNL, he said.
4G Spectrum will be given to BSNL and MTNL on 2016 spectrum allocation prices to help them start 4G services, he said.
The minister said BSNL and MTNL will be merged and pending this, MTNL will act as a subsidiary of BSNL.
(With inputs from agencies)
(Image Courtesy: Google Image)
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