New Delhi: The DoT will send a proposal
to the cabinet for a revival plan worth Rs 74,000 crore for the ailing
state-run telecom firms - BSNL and MTNL - where Rs 22,000 crore would be
in the way of capital infusion for acquiring 4G spectrum, and for a
voluntary retirement scheme (VRS), part of the expenditure for which
will be borne both companies.
The Department of Telecom (DoT)
move comes following the appointment of a high-level committee to look
into the revival of MTNL and BSNL, an official source said on Tuesday
Telecom Ministry's decision to send the revival proposals of BSNL and
MTNL will go to the cabinet this month along with opinions given by all
ministries, including the Finance Ministriy. It will also contain the
response of the nodal ministry to the queries, responses and comments
given by several other ministries," the source said.
cabinet had earlier asked DoT to relook and respond to the issues raised
by Finance Ministry, now we have done that. We will send the proposal
when the Cabinet Secretariat places it on its agenda, it's their call.
total package is Rs 74,000 crore. The 4G spectrum allocation funds of
Rs 22,000 crore (Rs 16,000 crore for BSNL and Rs 6,000 crore for MTNL)
will be the capital infusion. The rest of the funds will for their VRS,
which they will also bear in part", he added.
objections of the Finance Ministry to any capital infusion in the
telecom firms owing to their continuous losses over the last 10 years,
the sources said that as per the procedure for cabinet notes, the draft
is circulated for the opinion of other ministries and the nodal ministry
responds to these. All the minutes are then placed before the cabinet
for a collective decision.
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 rolls.
On Monday, the BSNL Chairman said
the revival package would be out in a month. While the company generates
monthly revenues of Rs 1,600 crore, a major chunk of this is used for
operational and statutory payments, which has caused the delay in paying
The company also posted a net loss of Rs 13,804 crore in fiscal 2018-19.
a group of ministers headed by Home Minister Amit Shah had approved the
revival plan proposed by the DoT for both the companies.