AFTER SHUTDOWN SPECULATION, BSNL AND MTNL NOW SEEK RS 74,000 CRORE TO COMEBACK

Two weeks ago there were some strong speculation suggesting the shutdown of BSNL and MTNL due to extremely poor financial status. Now, the Department of Telecom (DoT) has sent a proposal for Rs 74,000 Crores for the revival of BSNL and MTNL to the cabinet as per TNM report.

It is said that Rs 22,000 crore would be used for the capital infusion to obtain 4G spectrum (for BSNL and MTNL) and the rest of the funds would be allocated for Voluntary Retirement Scheme (VRS)

Reportedly the DoT's proposal surfaces after the appointment of a high-level committee to monitor the process of revival of MTNL and BSNL. It is said that the BSNL has a monthly bill of Rs. 850 crore pending as they have not paid the employee salaries for 1.76 lakh staff count.

The monthly revenue of BSNL is reported to be Rs. 16,000 and most of it would be used for operational and statutory payments. Therefore, it has created a huge barrier to pay employee salaries.

While BSNL and MTNL had suffered a net loss of Rs 13, 804 crores in the fiscal year 2018-19, a group of ministers headed by Home Minister Amit Shah nodded heads for the revival plan of Rs. 74, 000 crore according to the report.