Sanjay Singh / New Delhi
Plans for revival, Voluntary Retirement Scheme and funds for 4G and 5G spectrum allocation for loss making telecom companies, BSNL and MTNL has been put on hold by the Department of Telecommunications (DoT) till the formation of the new government at the Centre.
In April, the Ministry of Telecommunications had circulated a draft Cabinet note to various ministries and other concerned stakeholders in the government for consultations which is aimed at revival of BSNL and MTNL.
The Ministry of Finance had suggested the telecom ministry to rework on its proposal for revival of state-owned telecom companies. The Finance ministry has indicated that the DoT must come up with concrete strategy which would include financial outgo for revival and the impact it will have on the two state-run telcos, which it should be ready to submit when the new government at the Centre starts working.
The key issues in the revival proposal includes are the voluntary retirement scheme (VRS) and allocation of 4G and 5G spectrums. Also the revival proposal is related to monetization of the assets of BSNL and MTNL.
However, it is yet not clear whether the Department of Investment and Public Asset Management (DIPAM) or the DoT would carry out the mutation process which is involved in monetizing assets. The titles to buildings and lands of BSNL and MTNL are with the DoT.
Both these state-owned telcos have sought spectrum for 4G services through equity infusion from the government. While MTNL operates in Delhi and Mumbai, BSNL operates in all other 20 telecom circles, expect the two cities where the MTNL operates.
BSNL as of date has a debt of Rs 14,000 crore. Both firms have asked for a VRS for its employees. The VRS scheme for BSNL and MTNL will impact the revenue of these telcos by Rs 6,365 crore and Rs 2,120 crore.