BSNL, MTNL staff unions, associations meet with Prasad; commit support to the government aid plan
New Delhi, November 4 () Representatives of some employee unions and associations of BSNL and MTNL officers met Monday with Telecommunications Minister Ravi Shankar Prasad and offered their full support to the aid package, VRS and asset monetization plans recently announced by the government, sources said. .
It should be remembered that last month the government had approved a revival package of 69,000 million rupees for BSNL and MTNL that includes the merger of the two companies with losses, monetizing their assets and giving VRS to the employees so that the combined entity becomes profitable in two years.
On Friday, the minister (November 1) ordered BSNL and MTNL to quickly implement VRS guidelines and initiate proactive measures to monetize assets temporarily, while making it clear that they should become more aggressive in the telecommunications market.
Sources aware of the development said the minister also met Monday with employee unions and official associations and said they supported the implementation of the aid package.
The Union Cabinet headed by Prime Minister Narendra Modi on October 23 approved a plan to combine Mahanagar Telephone Nigam Ltd (MTNL), which provides services in Mumbai and New Delhi, with Bharat Sanchar Nigam Ltd (BSNL) that provides services to the rest of the Nation.
The approved rescue package includes the infusion of 20,140 million rupees of capital for the purchase of 4G spectrum, 3,674 million rupees so that GST is paid in the allocation of the spectrum, the companies that collect 15,000 rupees in debts with the guarantee sovereign and government funding of 17,160 crore. VRS) and another 12,768 million rupees for retirement liabilities.
The two companies will monetize assets worth Rs 37,500 crore in the next three years. MTNL has reported losses in nine of the last 10 years and BSNL has also been recording losses since 2010. The total debt of both companies was Rs 40,000 million, of which half of the liability is only MTNL. MBI MKJ