BSNL, MTNL Bailout: Modi Government Considers Rs 74,000 Crore Plan For PSU Telecoms

New Delhi, July 3: The government is considering a Rs 74,000 crore bailout plan to revive loss-making telecom companies MTNL and BSNL. According to reports, the government plans to offer a handsome exit package to the employees, and an additional 5 percent compensation to make the VRS package look attractive. The Department of Telecom had argued that the closing down of the two PSUs will cost Rs 1.2 crore and therefore, bailout option made sense. Prime Minister's Office Intervenes to Bail Out BSNL, MTNL; Asks DoT to Expedite Revival Proposals.

BSNL is one of the country's biggest loss-making PSU, while MTNL is the third-highest loss-making PSU. The two companies have been on a downward spiral for the last ten years due to high staff cost, poor management, unwanted interference from the government and extremely slow in being able to adapt to new technologies.

The report further talks about how the government feels that the cost of the companies can be reduced by bringing down the retirement age of the employees from 60 to 58.