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.
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.
Govt of @narendramodi has offered a very generous financial assistance to revival BSNL and MTNL. Now I would like to urge the employees of both these PSUs to work hard and help Govt in making these organizations profitable: @rsprasad— RSPrasad Office (@OfficeOfRSP) October 23, 2019
"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.
"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.