MTNL to be merged with BSNL for revival of state-owned telecom firms

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 Rs 29,937 crore for revival of the two state-owned telecom companies.

The revival package includes raising of Rs 15,000 crore sovereign bonds and monetising Rs 38,000 crore 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.