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.
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)