Lok Sabha Question No. 1503 (UNSTARRED), answered on 2021-07-28
Subject: Revival Package for BSNL and MTNL
Ministry: COMMUNICATIONS
Asked by: Gowdar Mallikarjunappa Siddeshwara

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK  SABHA UNSTARRED QUESTION NO. 1503 TO BE ANSWERED ON 28 th   JULY, 2021

## REVIVAL PACKAGE FOR BSNL AND MTNL

## 1503. SHRI G.M. SIDDESHWAR:

Will the Minister of COMMUNICATIONS be pleased to state:

(a) whether the Government has finalised and announced the revival package for the ailing MTNL and BSNL;

(b) if so, the details of the revival plan proposed by the Government and the steps taken/being taken by the Government for the implementation of the said plan;

(c) whether  the  employees  of  these  two  public  sector  companies  have  been  taken  into confidence before finalising the revival package; and

(d) if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR COMMUNICATIONS (SHRI DEVUSINH CHAUHAN)

(a) & (b) The  Government  approved  the  revival  plan  for  Bharat  Sanchar  Nigam  Limited (BSNL)  and  Mahanagar  Telephone  Nigam  Limited  (MTNL)  on  23.10.2019.  The  revival  plan inter-alia,  includes  measures  to  reduce  the  Staff  cost  through  a  Voluntary  Retirement  Scheme (VRS)  for  employees  of  age  50  years  and  above,  administrative  allotment  of  spectrum  for providing 4G services with funding through budgetary allocation, monetisation of non-core and core  assets  to  generate  resources  to  retire  debt,  meet  CAPEX  and  other  requirements,  debt restructuring  by  raising  of  Sovereign  Guarantee  Bonds  and  in-principle  approval  for  merger  of BSNL and MTNL.

The following steps have been taken by the Government to implement the revival plan:

1. VRS  has  been  successfully  implemented  in  BSNL  and  MTNL.  Total  92,956  employees (78,569 - BSNL, 14,387 - MTNL) opted for VRS. As a result, salary expenditure is reduced by  approximately  50%  in  BSNL  and  by  approximately  75%  in  MTNL.  Government  has allotted Rs. 16,206 crores to meet the cost of ex-gratia on VRS.
2. Budget allocation  of  Rs.  24,084  crores  for  spectrum  for  4G  services  has  been  made  in  FY 2021-22.  BSNL  has  floated  the  Expression  of  Interest  (EoI)  on  01.01.2021  for  Proof  of Concept (PoC) from Indian Companies interested in participating in BSNL's upcoming 4G tender. Letter of Intent (LoI) has been issued to 5 eligible bidders on 01.07.2021.

3. Government has provided Sovereign Guarantee of Rs. 8,500 crores and Rs. 6,500 crores to BSNL and MTNL respectively. Both BSNL and MTNL have raised bonds and  utilised the funds to retire existing high-cost debt.
4. The assets of BSNL /MTNL have been identified for monetization and in Phase-I, 4 properties of BSNL and 2 properties of MTNL have been processed for bidding through DIPAM route.
5. As a measure of Government support to BSNL, instructions have been issued for mandatory utilization of capacities of BSNL and MTNL by all Ministries/ Departments of Government of India/CPSEs/Autonomous  bodies  etc.  for  their  internet/broadband,  landline  and  leased  line requirements.

(c) & (d) The  revival  plan  has  been  prepared  considering  the  recommendations  of  Indian Institute of Management, Ahmedabad for BSNL and a consultant for MTNL, which were made by  them  after  consultations  with  various  Unions/Associations/employees.  These  revival  plans were recommended by the Boards of BSNL and MTNL.

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