The government of Narendra Modi is actively considering relaunching the two public telecom operators, Bharat Sanchar Nigam Limited(BSNL) and Mahanagar Telephone Nigam Limited(MTNL), through a voluntary retirement program (VRS), 4G spectrum allocation and debt reduction. According to a senior official, plans to lay off employees were also denied.
Due to heavy competition of Airtel, Reliance Gio, and other telecom companies, the old and trusted brand BSNL got affected, the demand for BSNL rapidly falling this created tensions in the company and government.
BSNL Officials: Don’t Give Ears For Rumors
Recently a rumor spread through a report which was stating almost 31% of BSNL employees will be fired because of losses occurring for the company and to cut down the cost.
Here is a video explaining Why BSNL is better than any other networks?
“The government, in close coordination with the Board of Directors of BSNL, is actively developing a Voluntary Retirement System (VRS) with attractive benefits,” said government official, adding that the system as a whole. It would be optional for employees.
Removing the employees from the job is not at all consideration: said by BSNL chairman “Anupam Shrivastava”.
MTNL’s debt is approximately 20,000 million rupees, while BSNL has 13,000 million rupees since 2018.
“The government is also considering some form of support that might not be a direct injection of money,” the official said, adding that the proposal to issue corporate bonds guaranteed by the government was also on the table.
Previously, the two government-owned companies had proposed the issuance of 10-year bonds to finance their VRS plans.
As part of its stimulus strategy, the two companies requested the Center on VRS, monetization of assets and assignment of 4G radio waves to compete with Reliance Jio, Bharti Airtel and Vodafone Idea.
The Ministry of Telecommunications (DoT), according to the source, also plans to obtain a green light soon from the Election Commission of India (ECI) to review the proposals for the deployment of 4G of the two telecommunications operators in the Cabinet.
“By receiving the necessary approvals, we will soon be able to launch High-Speed 4G Evolution (LTE) services,” said Shrivastava.
Another proposal is also under the cabinet to Merge BSNL with MTNL to get a mutual benefit and compete with other brands in the market.
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