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BSNL, MTNL to be merged, Cabinet approves four-way revival plan

The Minister also said MTNL will be merged with BSNL for the revival of state-owned telecom firms. Until the time of the full merger, MTNL will act as a unit of BSNL. 

Published: 23rd October 2019 04:49 PM  |   Last Updated: 23rd October 2019 05:35 PM   |  A+A-

Union Ministers Prakash Javadekar, Hardeep Singh Puri and Ravi Shankar Prasad brief the media in New Delhi. (Photo | Shekhar Yadav)

By Online Desk

The cabinet has finally approved the revival package of the two sick telecom companies - Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) Wednesday.

"MTNL, BSNL are neither being closed nor divested," said Telecom Minister Ravi Shankar Prasad.

ALSO READ: Days after strike threat from employee unions, BSNL, MTNL promise staff salaries before Diwali

The Minister also said MTNL will be merged with BSNL for the revival of state-owned telecom firms. Until the time of the full merger, MTNL will act as a unit of BSNL. 

The government on Tuesday announced a four-step plan to revive the telcos. Prasad said the government aims to make these two companies more competitive. Hence, it intends to raise Rs 15,000 crore through sovereign bonds.

"Assets of BSNL and MTNL worth Rs 38,000 crore will be monetized in four years," he added.

It was also announced that 4G spectrum will be given to both BSNL and MTNL. The government has planned to offer an "attractive" VRS package for the employees of both the companies.

ALSO READ: BSNL to introduce 4G network and roll out VoLTE service; users will soon be able to make video calls

"For example, any employee who opts for VRS package and is over the age of 53.5, will be given 125 per cent remuneration of the salary, pension and gratuity until the age of 60," Prasad said.



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