Amit Shah-headed GoM discusses VRS scheme for BSNL, MTNL employees
The administrative cost for the allocation of 4G radio waves to BSNL is pegged at Rs 14,000 crore, and Rs 6,000 crore for MTNL.
The GoM, which also included telecom, IT and law minister Ravi Shankar Prasad and finance minister Nirmala Sitharaman, however has not taken a final call, people familiar with the matter said.
They added that the group during the two-hour-long meeting discussed the ways to bring back the two public sector service providers back to health and considered monetisation of lands and building assets to fund VRS to the willing employees.
The VRS packages are worth Rs 6,365 crore for BSNL, and Rs 2,120 crore for MTNL.
The Centre is also mulling operating synergy between BSNL and MTNL to further save operational cost. MTNL offers cellular services in Delhi and Mumbai whereas BSNL operates in rest of the country.
The revenue to wage ratio of both telcos is way higher than the private sector players.
Since 2016, both public sector operators have been demanding allocation of 4G radio waves to stay competitive in the data-led service delivery, which is also leading their revenue fall on a quarter-to-quarter basis.
The administrative cost for the allocation of 4G radio waves to BSNL is pegged at Rs 14,000 crore and Rs 6,000 crore for MTNL.
The government should immediately look at assets monetisation strategies including towers and fibre to make BSNL and MTNL stay afloat," PHD Chamber of Commerce & Industry telecom committee chairman Sandeep Aggarwal said.
The real estate assets, fibre optic network and mobile towers of BSNL and MTNL combined are pegged at Rs 1.10 lakh crore, Rs 60,000 crore and Rs 35,000 crore tentatively.