The Centre on Wednesday approved the merger of BSNL and MTNL. The Union Cabinet, headed by Prime Minister Narendra Modi, also approved a revival plan for the both state-run telecom companies.
Union Minister Ravi Shankar Prasad said that the government will put in Rs 29,937 crore for revival of BSNL and MTNL.
He also announced revival plan of raising a sovereign bond of Rs 15,000 crore and monetising Rs 38,000 crore of assets in next four years.
The government is planning to offer a voluntary retirement package to both BSNL and MTNL employees to reduce cost.
Ravi Shankar Prasad’s office tweeted, “BSNL and MTNL are strategic assets of India. They cater to the needs of people during disaster. They provide important communication services to government.”
The government has urged employees of both the PSUs to work harder and help the government in its effort to make the organisations profitable.