New Delhi: The Prime Minister’s Workplace is learnt to have agreed in precept to bail out loss-making public sector telecom companies MTNL and BSNL by addressing their three key ache factors.
In a gathering held a few days again with representatives of telecom and finance ministries and NITI Ayog, the PMO requested the Division of Telecom to ship expeditiously a roadmap for allocation of 4G spectrum to each the companies, voluntary retirement scheme and grant of rapid monetary support, based on an official supply.
The troubled PSUs have been looking for these three measures to remain afloat amid cut-throat competitors within the telecom sector.
“The government has taken a decision that both MTNL and BSNL have to be revived and sustained in a healthy manner. Senior officer from PMO held a meeting with DoT, finance ministry and Niti Aayog in which it has been decided that DoT will submit a detailed roadmap at the earliest to concerned authorities for the revival of MTNL and BSNL,” the supply informed PTI.
Each the businesses have additionally sought spectrum for 4G providers by fairness infusion from the federal government.
BSNL, which has the bottom debt of Rs 14,000 crore amongst all telecom operators, has sought 4G spectrum throughout India by fairness infusion of Rs 7,000 crore. The full spectrum will price the agency Rs 14,000 crore.
The PSUs have been additionally ailing due to excessive revenue-to-debt ratio as a consequence of a excessive variety of authorities workers that have been transferred by the Division of Telecom to them on the time of their formation. BSNL has 1.76 lakh workers throughout India and MTNL has 22,000 workers.
MTNL has sought a refund of curiosity that it paid for broadband wi-fi entry spectrum which it was given by the federal government and requested to pay the value that was decided in auctions held in 2010.
Each state-run telecom companies have requested for permissions to monetise their land property in addition to the voluntary retirement scheme for workers on the Gujarat mannequin. Underneath the Gujarat mannequin, an quantity equal to 35 days of wage for every accomplished 12 months of service, and 25 days of wage for annually of service left until retirement is obtainable.
The VRS scheme for BSNL and MTNL could have a income affect of Rs 6,365 crore and Rs 2,120 crore respectively.
The revenue-to-wage ratio in case of MTNL has swelled to 90 p.c whereas within the case of BSNL it’s round 60-70 p.c. The DoT has advisable that VRS of each PSUs needs to be funded by a 10-year bond situation and the bonds needs to be paid again by lease income that they are going to get from land asset monetisation.
“In the meeting, it was decided to help MTNL and BSNL in raising capital and operational expenditure. There is a proposal of asset monetisation and there is also the option of loans through sovereign guarantee. DoT has been asked to work on the best-suited action that needs to be taken,” the supply stated.
Firstpost is now on WhatsApp. For the most recent evaluation, commentary and information updates, join our WhatsApp providers. Simply go to Firstpost.com/Whatsapp and hit the Subscribe button.