All India BSNL Pensioners' Welfare Association.


Today, 23-10-2019, the cabinet has approved the Revival plan for BSNL and MTNL.
Announcing the decisions, MoC Shri Ravi Shankar Prasad stated :

1. BSNL and MTNL are strategic assets of the Nation. During natural calamities, military actions and for army communication network, banking communication networks etc. only BSNL has given proper help.

2. BSNL and MTNL shall not be closed down. There shall be no disinvestment also.

3. Both the companies will be made competitive. Funds will be raised by issuing bonds, 4 G spectrum will be allotted to BSNL and during the next four years lands of BSNL will be monetized.

4. ATTRACTIVE VRS is offered to reduce the salary expenditure. Rs 17169 cr will be used for giving ex-gratia benefits and Rs 12000 needed for giving pensionary benefits, which is government responsibility.

5. For the time being, MTNL will be made a subsidiary company of BSNL. MTNL cannot be straight away merged now because some of its shares are already disinvested. Such issues will be sorted out on fast tract method.

PSR , 23-10-2019 1720 hrs.

The Press release is attached:

The Union Cabinet today approved the proposal for revival of BSNL and MTNL by administrative allotment of spectrum for 4G services, debt restructuring by raising of bonds with sovereign guarantee, reducing employee costs, monetisation of assets and in-principle approval of merger of BSNL & MTNL.

The following was approved by the cabinet:-
1. Administrative allotment of spectrum for 4G services to BSNL and MTNL so as to enable these PSUs to provide broadband and other data services. The said Spectrum will be funded by the Government of India by capital infusion in these PSUs at a value of Rs 20,140 Cr in addition; the GST amount of Rs 3,674 Cr to this spectrum value will also be borne by the Government of India through Budgetary resources. By using this spectrum allotment, BSNL and MTNL will be able to deliver 4G services, compete in the market and provide high speed data using their vast network including in rural areas.
2. BSNL and MTNL will also raise long-term bonds of Rs 15,000 Cr for which sovereign guarantee will be provided by the Government of India (GoI). With the said resources, BSNL and MTNL will restructure their existing debt and also partly meet CAPEX, OPEX and other requirements.
3. BSNL and MTNL will also offer Voluntary Retirement to their employees, aged 50 years and above through attractive Voluntary Retirement Scheme (VRS), the cost of which will be borne by the Government of India through budgetary support. The
ex-gratia component of VRS will require Rs. 17,169 Cr in addition, GoI will be meeting the cost towards Pension, Gratuity and Commutation. Details of the scheme will be finalised by BSNL/MTNL.
4. BSNL and MTNL will monetise their assets so as to raise resources for retiring debt, servicing of bonds, network upgradation, expansion and meeting the operational fund requirements.
5. In-principle merger of BSNL and MTNL

It is expected that with the implementation of said revival plan, BSNL and MTNL will be able to provide reliable and quality services through its robust telecommunication network throughout the country including rural and remote areas.
PRESS Release ID :193957)