Cabinet gives in-priniciple approval; Rs 38,000-cr assets to be monetised in 4 years

Cabinet gives in-priniciple approval; Rs 38,000-cr assets to be monetised in 4 years

Cabinet gives in-priniciple approval; Rs 38,000-cr assets to be monetised in 4 years

The Centre has decided to merge state-owned telecom players BSNL and MTNL in its last minute attempt to revive the ailing firms, informed Union minister Ravi Shankar Prasad. "It can’t be done soon because MTNL is a listed company. It would take time," Prasad said, adding that the cabinet has decided to raise a sovereign bond of Rs 15,000 crore for revival of BSNL and MTNL, he said. 

It is learnt that the MTNL will be a subsidiary of the resultant entity. Adding that the Centre has no plans to shut down or disinvest state-owned telecom players BSNL and MTNL, Prasad assured that BSNL and MTNL will not be hired to third parties and a revival package for the bleeding companies is in the offing. As part of the merger proposal, assets worth Rs 38,000 crore will be monetised in four years. 

He said that the government will make voluntary retirement scheme more attractive for BSNL, MTNL employees. 

The story will be updated with further details. 

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