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Cabinet Gives In-Principle Approval For Merger Of MTNL With BSNL

The Revival Plans Also Includes Raising Sovereign Bonds, Monetising Assets And Voluntary Retirement Scheme (VRS) For Employees.

News Nation Bureau | Edited By : Raghwendra Shukla | Updated on: 23 Oct 2019, 05:05:23 PM
Union Minister Ravi Shankar Prasad said the government will put in Rs 29,937 crore for revival of BSNL and MTNL

Union Minister Ravi Shankar Prasad said the government will put in Rs 29,937 crore for revival of BSNL and MTNL (Photo Credit: ANI)

New Delhi:

The Modi-led central government on Wednesday decided to merge loss-making telecom firms BSNL (Bharat Sanchar Nigam Limited) and MTNL (Mahanagar Telephone Nigam Limited) as part of a revival package. Till the time of merger, the MTNL will act as a subsidiary of BSNL.

The revival plans also includes raising sovereign bonds, monetising assets and voluntary retirement scheme (VRS) for employees.

Briefing reporters on decisions taken by the Cabinet headed by Prime Minister Narendra Modi, Union Minister Ravi Shankar Prasad said the government will put in Rs 29,937 crore for revival of the two state-owned telecom companies. 

The revival package includes raising of Rs 15,000 crore sovereign bonds and monetising Rs 38,000 crore of assets in next four years. Also, voluntary retirement will be offered to employees to cut cost, he said.

Meanwhile, the Cabinet has hiked the minimum support price (MSP) for wheat by Rs 85 to Rs 1,925 a quintal and for pulses by up to Rs 325 per quintal. A decision in this regard was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi. 

The MSP is the rate at which the government buys grains from farmers.

"In a move to increase farmers' income, the Cabinet has increased the MSP of rabi (winter-sown) crops for the current year," Information and Broadcasting Minister Prakash Javadekar told reporters after the meeting.

The CCEA has approved Rs 85 per quintal hike in wheat MSP to Rs 1,925 per quintal for the 2019-20 rabi crop, up from Rs 1,840 per quintal last year.

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First Published : 23 Oct 2019, 04:29:58 PM

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BSNL MTNL Ravi Shankar Prasad