MTNL will act as a subsidiary of BSNL after the merger.
(Photo: iStock)
The Union Cabinet today approved merger of loss-making telecom firms BSNL and MTNL as part of a revival package that includes raising sovereign bonds, monetising assets and voluntary retirement scheme (VRS) for employees. The revival package for BSNL and MTNL includes raising of ₹15,000 crore sovereign bonds and monetising ₹38,000 crore of assets in next four years.
MTNL will act as a subsidiary of BSNL after the merger.
To cut cost, voluntary retirement will be offered to employees to cut cost, he said.
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Briefing the media on decisions taken by the Cabinet headed by Prime Minister Narendra Modi, Union Telecom Minister Ravi Shankar Prasad said the government will put in ₹29,937 crore for revival of the two state-owned telecom companies.
BSNL has a staff 1.76 lakh on its rolls and the company posted a net loss of ₹13,804 crore in fiscal 2018-19.
(With input from agencies)
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