The Department of Telecommunications (DoT) has approached the Empowered Group of Ministers (EGoM) for its approval to extend financial help to Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL).
DoT proposes to either extend a grant or bring in fresh equity to fund the one-time licence fee for both the operators.
According to DoT, given their current financial position and their strategic significance in the Indian market, the operators should be provided financial aid by the government.
Earlier, both BSNL and MTNL had approached the Ministry of Finance with the request to provide a financial package to help them fund their one time spectrum fee. Following EGoM’s decision to impose a one-time fee on incumbent players holding excess spectrum, together the two operators face a pay out of Rs 10 billion. Additionally, they may also have to pay the government for re-farming of 900 MHz spectrum.
