BSNL, MTNL to be merged; govt announces 69,000 cr. revival plan

The Union Cabinet has given its nod to a 69,000 crore revival plan for BSNL and MTNL on Wednesday that includes the merger of BSNL and MTNL, raising sovereign bonds, monetising assets and voluntary retirement scheme (VRS) for employees.

The revival plan approved includes infusion of Rs 20,140 crore capital for purchase of 4G spectrum, Rs 3,674 crore for GST to be paid on spectrum allocation, companies raising Rs 15,000 crore in debt on the sovereign guarantee and government funding Rs 17,160 crore voluntary retirement scheme (VRS) and another Rs 12,768 crore towards retirement liability. Assets of BSNL and MTNL worth Rs 37,500 crore will be monetised the next three years.