Telecom minister Ravi Shankar Prasad announced the 4-step revival plan for the two companies, adding that the government wants to make the two state-owned telecom operators competitive by investing INR 299.37 billion in the development of their operations. According to Prasad, the government will raise INR 150 billion through sovereign bonds. Assets worth INR 380 billion will be monetisated in four years, Prasad also said.
The Indian government will "administratively" allocate 4G spectrum for BSNL and MTNL at 2016 prices, the minister added. Prasad also said the government will offer a VRS package for employees of both the companies. According to the government representative, any employee above the age of 53 and half, who opts for the VRS, will be provided with a 125 percent remuneration of the salary, pension and gratuity till the age of 60.
MTNL widened its net loss to INR 7.03 billion in the quarter ended 30 June 2017, from a loss of INR 6.34 billion in the previous quarter. For the quarter ended 30 June 2017, total income from operations decreased to INR 8.12 billion from INR 9.63 billion in the year-ago quarter.
BSNL reported a loss of INR 6.91 billion for the year 2013/14, turning to profit of INR 6.72 billion for 2014/15 and INR 38.54 billion in 2015/16. "Even in the midst of cut-throat competition from Reliance Jio, BSNL is adding 20 lakh new mobile customers every month. BSNL is sure to become a profit making PSU within next 2-3 years", said BSNL Employee Union convenor P Abhimanyu. BSNL's employees called a day-long nationwide strike on 27 July, after failing to get a wage increase from the Pay Revision Committee. "BSNL became a loss making entity not because of the employees but because of the anti-BSNL policies and measures adopted by the government. BSNL was not allowed to procure equipment for its mobile network expansion from 2006 to 2012", Abhimanyu also said.
