Lok Sabha Question No. 389 (UNSTARRED), answered on 2021-02-03
Subject: Revival of BSNL and MTNL
Ministry: COMMUNICATIONS
Asked by: P.P. Chaudhary, Arjunlal Meena, Kaushal Kishore

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK  SABHA UNSTARRED QUESTION NO. 389 TO BE ANSWERED ON 3 RD  FEBRUARY, 2021

## REVIVAL OF BSNL AND MTNL

389. SHRI P.P. CHAUDHARY: SHRI ARJUN LAL MEENA: SHRI KAUSHAL KISHORE:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) the measures taken/being taken by the Ministry to revive MTNL and BSNL;
- (b) the  details  of  the  steps  initiated  by  the  Government  after  the  said  revival  proposal  was finalised;
- (c) whether  the  sanctioned  amount  of  Rs  69000  crore  for  the  aforesaid  purpose  has  been utilised and if so, the details thereof including the expenditure trail of the said amount; and
- (d) whether the Government has been able to monetize land/building, tower and fiber assets of BSNL/ MTNL yet and if so, the details thereof; and
- (e) the details of restructuring of debt of BSNL and MTNL?

## ANSWER

## MINISTER OF STATE FOR COMMUNICATIONS, EDUCATION AND ELECTRONICS & INFORMATION TECHNOLOGY (SHRI SANJAY DHOTRE)

- (a) 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 Land/Building and Tower/Fibre 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.
- (b) to (e) The following steps have been taken by the Government to implement the revival plan:
1. VRS  have  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  total  funds  requirement  for  ex-gratia  on  VRS.  An amount of Rs. 14,890 Crores has been released to BSNL/MTNL. In addition, Government has incurred an expenditure for Rs 1,952 Crores on account of incremental pension till 21.12.2020.

2. Total allocation of Rs. 24,084 Crores for spectrum for 4G services was made in FY 2020-21. Due to delay anticipated in launch of 4G services, the funds are being re-allocated in FY 202122. BSNL  has floated the Expression of Interest (EOI) on 01.01.2021 for prior registration/Proof  of  Concept  (PoC)  from  Indian  Companies  interested  in  participating  in BSNL's upcoming 4G tender, to promote indigenous manufacturing in Telecom Sector.
3. Government has provided Sovereign Guarantee of Rs 8,500 Crores and Rs.  6,500  Crores  to  BSNL  and  MTNL  respectively.  BSNL  has  raised  Rs.  8,500  Crores  at coupon rate of 6.79% p.a. and MTNL has raised Rs. 4,361 Crores at coupon rate of 7.05% p.a. and Rs 2,139 Crores at coupon rate of 6.85% p.a. in two tranches. BSNL and MTNL have informed  that  the  amount  realised  through  the  bonds  has  been  utilised  to  restructure/repay existing high cost debt.
4. The  assets  of  BSNL  /MTNL  have  been  identified  for  monetization  through  Department  of Investment  and  Public  Asset  Management  (DIPAM)  and  directly  by  BSNL/MTNL  through outright Sale/Leasing to other Govt. depts./PSUs/Other eligible Organizations. In Phase-I for monetisation  of  Land/Building  assets  through  DIPAM  route,  Alternative  Mechanism  of DIPAM  approved  monetisation  of  11  assets  of  BSNL  and  06  assets  of  MTNL.  3(three) properties of BSNL and 1(one) property of MTNL have been identified for bidding process.
5. BSNL has informed that it has been able to generate Rs.241.87 Crores from monetisation of land/building assets since announcement of revival package.

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