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Reeling from debt of Rs 20,000 crore, Mahanagar Telephone Nigam (MTNL) has submitted a plan to the government to ensure its survival. This includes converting its loans into absolute guarantee, giving up 3G spectrum, afterlight of employees’ pay, and introducing a autonomous retirement arrangement (VRS).



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If all abroad fails, the aggregation said, the government should booty over MTNL or dissolve, with the alone action that all its advisers should be captivated by the Department of Telecommunications (DoT).



Bharat Sanchar Nigam, the added government-owned telecom company, has additionally fabricated a bailout plea.

ALSO READ: MTNL Q3 standalone accident widens to Rs 832 crore, absolute amount rises



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In a letter to the DoT, MTNL said loans to the tune of Rs 20,000 crore was taken by the aggregation to bright approved dues. So, the government charge catechumen these with absolute agreement and booty albatross for the arch and interest. This would save the aggregation Rs 2,000 crore per anniversary absorption payment.

MTNL advisers additionally appetite a VRS. Afterwards the latest pay revision, MTNL has to carapace out Rs 300 crore added appear agent allowances per year. If 10,000 advisers booty the VRS, as the estimates suggest, again the allowance bill will be cut by Rs 100 crore.

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If the aggregation surrenders 3G spectrum, it will get Rs 3,500 crore. This can be invested in its landline business that has been assuming well.

Another antecedent of acquirement the aggregation has articular is absorption on its broadband and fibre-to-home business. The aggregation expects to acquire Rs 500 crore annually from this. MTNL wants to access 4G alone if the government affairs this.

The government can additionally monetise its bare or under-used absolute acreage assets to accompany the aggregation aback into the black.

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A above DoT official said, “MTNL approaches the government for a bailout from time to time, abnormally back it is in the red. Now, they accept been in losses for a continued time and charge some hand-holding.”

The aggregation has never afore capital the government to booty over all its advisers and do whatever all-important to animate it.

Another affair for MTNL is its proposed alliance with BSNL. The government is yet to booty a accurate accommodation on this.

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“The advisers are not adjoin the merger, but the pay afterlight board should access at a compatible pay amalgamation for the advisers of both companies,” said an MTNL official who did not appetite to be named.

In 1986, the government congenital MTNL to administer and ascendancy telecommunication casework in New Delhi and Mumbai at affordable rates. An industry expert, who did not appetite to named, said there was call for at atomic one accessible area amateur in the articulation to ensure antagonism afterwards the contempo access of consolidation.

The able additionally said if BSNL and MTNL were alloyed it would be acceptable for both as they would be a stronger article together. MTNL would be able to accommodate casework beyond the nation including BSNL’s pan-Indian network.

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ALSO READ: DoT may not extend 90-day aeon for telecom firms to analysis 5G spectrum

In the July-September division of the accepted banking year (2018-19), MTNL appear standalone losses of Rs 859 crore due to access in accounts amount and abatement in sales. The agent amount fabricated up 92.2 per cent of the absolute amount of the company, which was 29 per cent added than the acquirement of Rs 572.83 crore.

BSNL additionally has debt of Rs 10,000 crore and has registered losses of Rs 4,785 crore in the aforementioned period.

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