MERGER OF BSNL AND MTNL

Oct. 24, 2019

Union Cabinet has approved the revival plan of BSNL and MTNL and in-principle merger of the two.

The following was approved by the  Union cabinet:

  • Administrative allotment of spectrum for 4G services to BSNL and MTNL. This will be funded by the Government of India by capital infusion in these PSUs at a value of over Rs 20,000 Crore,

  • BSNL and MTNL will also raise long-term bonds of Rs 15,000 Cr for which sovereign guarantee will be provided by the Government of India (GoI). With this, BSNL and MTNL will restructure their existing debt.

  • BSNL and MTNL will also offer Voluntary Retirement to their employees, aged 50 years and above through attractive Voluntary Retirement Scheme (VRS), the cost of which will be borne by the Government of India through budgetary support.

  • BSNL and MTNL will monetise their assets so as to raise resources for retiring debt, servicing of bonds, network upgradation, expansion and meeting the operational fund requirements.

  • In-principle merger of BSNL and MTNL. An immediate merger will not be feasible, given that MTNL is a listed entity. Till the time the process is completed, MTNL will work as a subsidiary of BSNL. 

Source : Livemint

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