Mahanagar Telephone Nigam Limited (MTNL) has cleared all pending salaries till March 2020. The telco is now seeking to resolve its debt issues via asset monetisation.
MTNL has seen a reduction of over 60 per cent wage load post voluntary retirement of 14,378 employees. With this, the current workforce of MTNL now stands around 4,000 in Delhi and Mumbai. As per MTNL, revenue collection in March 2020 stood around Rs 1.9 billion out of which salary payments worth Rs 300 million has been made.
The first tranche of ex-gratia payment worth Rs 8.04 billion, to all voluntary retirement scheme (VRS) employees has been paid and the company expects to clear the rest 50 per cent as per the timeline.
According to the telco, debt still remains a major issue. In addition, a high finance cost at around Rs 20 billion is burdening the telco. The telco is working towards resolving these issues through asset monetisation and business expansion.
According to official data, MTNL has a debt of around Rs 200 billion. The company has started leasing premises in Mumbai and Delhi.
Meanwhile, Bharat Sanchar Nigam Limited (BSNL) has cleared the salary of employees due till February 2020. However, the salary is yet to be cleared for the month of March 2020.