The government will transfer its 56.89 per cent shareholding in Mahanagar Telephone Nigam Ltd (MTNL) to Bharat Sanchar Nigam Ltd (BSNL) as a first step to revive the two loss-making companies, the former said in a notice to the BSE on Friday. The merged entity would also raise Rs 15,000 crore via sovereign bonds to restructure their debt.
The Cabinet had approved a package which included a generous voluntary retirement scheme for all staff of the two companies aged 50 and above. Currently, the employee more than the age of 55 years, opting for VRS the pension will be computed only when they attain 60 years (current retirement age). For those currently 55 years old and less, on opting for VRS, the pension will be computed in the sixth year i.e. 2024-25.
The Department of Telecommunications will allot spectrum to BSNL/MTNL for providing 4G services through capital infusion by the government. The payment of GST on the spectrum cost will be paid through budgetary support.