BSNL, MTNL To Get Rs 37,640 From Government In FY21
MTNL has reported losses in nine of the past 10 years and BSNL too has been ringing in losses since 2010.
State-owned telecom firms Bharat Sanchar Nigam Ltd. and Mahanagar Telephone Nigam Ltd. will get fund infusion of around Rs 37,640 crore mainly for 4G spectrum and implementation of voluntary retirement scheme, according to the Budget document.
The government will infuse Rs 14,115 crore in BSNL and Rs 6,295 crore in MTNL for 4G spectrum. Besides, Rs 2,541 crore and Rs 1,133 crore will be provided to BSNL and MTNL, respectively as grant-in-aid for payment of GST.
MTNL has reported losses in nine of the past 10 years and BSNL too has been ringing in losses since 2010. The total debt on both the companies is at Rs 40,000 crore, of which half of the liability is on MTNL alone. The capital infusion for 4G spectrum will help debt-ridden public sector undertaking companies to compete with private sector players who have rolled out pan-India 4G services.
Both the firms will get Rs 9,889.65 crore cumulatively for ex-gratia payment for voluntarily retiring employees and Rs 3,294.77 crore for implementing voluntary retirement scheme. The capital infusion for 4G spectrum will help the debt-ridden PSUs to compete with private sector players who have rolled out pan-India 4G services.
MTNL will also get financial support of Rs 372 crore on account of minimum alternate tax, refund of CDMA spectrum, payment of interest on MTNL bonds and fiber-to-the-home service. Besides, state-owned telecom manufacturing unit, Indian Telephone Industries Ltd. will get fund infusion of Rs 405 crore in the upcoming fiscal year.