MTNL will act as a subsidiary of BSNL, says Telecom Minister Ravi Shankar Prasad announcing the Cabinet decisions
The government on Wednesday decided to merge loss-making telecom firms MTNL and BSNL as part of a revival package that includes raising sovereign bonds, monetising assets and voluntary retirement scheme (VRS) for employees.
Briefing reporters on decisions taken by the Cabinet headed by Prime Minister Narendra Modi, Telecom Minister Ravi Shankar Prasad said the government will put in ₹29,937 cr. for revival of the two state-owned telecom companies.
The revival package includes raising of ₹15,000 cr. sovereign bonds and monetising ₹38,000 cr. of assets in next four years.
Also, voluntary retirement will be offered to employees to cut cost, he said.
He said BSNL and MTNL will be merged. Pending this, MTNL will act as a subsidiary of BSNL.