New Delhi | Jagran Business Desk: The state-run companies BSNL and MTNL are set to be merged, Union Minister Ravi Shankar Prasad said on Monday. "Neither MTNL or BSNL are being closed, nor being disinvested, nor is being hired to any third party," ANI quoted the minister as saying. The announcement comes after the Union Cabinet gave a nod to the merger of these ailing companies.
Briefing the reporters the Cabinet headed by Prime Minister Narendra Modi, Telecom Minister Ravi Shankar Prasad said the government will invest Rs 29,937 crore to revive these two state-owned telecom companies. The cash injection includes raising Rs 15,000 crore in sovereign bonds and monetising assets worth Rs 38,000 crores in the next four years.
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The cabinet also added that a voluntary retirement will be offered to employees as a part of a cost-cutting measure.
The move comes at a time when these public sector companies are facing financial woes amid intense competition with rivals Reliance Jio, Airtel, Vodafone-Idea, etc. in the telecom sector.
The two distressed telecom firms have been incurring losses and facing trouble in clearing the salaries of its staff in the recent past. The total loss of BSNL is estimated to be around Rs 14,000 crore with a fall in revenue of around Rs 19,308 crore in the previous financial year of 2019. The company has 12 crore mobile subscribers and a market share of 11 per cent. The total number of employees in BSNL stands at 1.65,179.
Earlier the public merger had been discussed as many times in the last 10 years but due to HR and listing issues, it never came into fruition.
Besides BSNL-MTNL merger, the Union Cabinet also approved a price hike (MSP) of cereals, pulses and oilseeds of rabi crops to give a boost to the farmers.
"The MSP for wheat and barley has been increased by Rs 85, gram by Rs 255, masur (lentil) by Rs 325 and mustard by Rs 225. This has been done to double the income of farmers and give them justice," Javadekar was quoted as saying by ANI.
Posted By: James Kuanal
