The Department of Telecommunications (DoT) is reportedly expecting to receive the cabinet’s approval for the revival plan of state-owned telcos Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) by the end of August 2019.
Additionally, the country’s telecom licensor has provided Rs 5 billion to BSNL, which would be used to pay the wages of PSUs employee for the month of July 2019.
As part of the revised revival plan approved by the telecom minister recently, merger of BSNL and MTNL is on the anvil. According to the plan, MTNL will be converted into a subsidiary of BSNL which would be conducted after sorting out several issues including human resources. Further, according to industry sources, a joint committee is put in place to oversee the entire process over the next 18 months.
The revival plan includes a capital infusion of Rs 141.55 billion into BSNL for acquiring 4G spectrum, land monetisation to meet its expansion plans, setting up a special-purpose vehicle to which Rs 230 billion of BSNL’s debt and an equivalent land parcel would be transferred, and financial support for BSNL’s rural exchanges.