The Ministry of Communications and IT is likely to announce incentives to facilitate the revival of the two state-run operators, Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL).
The telecom ministry has been reviewing the working of both the operators and has focussed on increasing their revenue potential and identifying business opportunities among various other things. Further, the ministry has been planning to merge the two entities in the long run.
The government has also taken a few measures to improve the financial positions of BSNL and MTNL. In this regard, the government has allowed MTNL to account for the pension liabilities of its employees that opted for combined service pension on par with the employees in BSNL. Also, it waived BSNL?s loan of Rs 14.11 billion and provided financial support of Rs 4.92 billion to MTNL to meet its minimum alternate tax liabilities.
