News: Telecom Minister approves plan for telecom PSUs

#MergersAndAcquisitions

Telecom Minister approves plan for telecom PSUs

In an effort to catch up with the 4G wave, the faltering and loss-making companies MTNL and BSNL will merge and get help from the government to raise capital to build a 4G network.
Telecom Minister approves plan for telecom PSUs

Mahanagar Telephone Nigam Ltd (MTNL) and Bharat Sanchar Nigam Ltd (BSNL) will merge together, as part of a plan that was recently approved by the Telecom Minister Ravi Shankar Prasad. 

MTNL would become a subsidiary of BSNL and HR continues to be one of the major challenges that the leaders would face during the upcoming merger. Over the next 18 months, a joint committee will oversee the process of the merger. 

The revival plan includes Rs. 14,155 crore capital infusion into the BSNL on behalf of the government in order to broaden the 4G spectrum. In order to meet the plans for the company’s expansion, land monetization is also one of the major line items. These efforts will be initiated and executed by the Department of Telecommunications (DoT) and the Department of Investment and Public Asset Management (DIPAM). 

For employees above 50 years, a voluntary retirement scheme has been offered and the retirement age will be reduced to 58. Employees will receive ex-gratia amount in cash via five installments or in one go, depending on the tax benefits structure. 

The focus area for both MTNL and BSNL is to install and provide 4G network. 

 

 

Image credit: thebetterahmedabad.

Topics: #MergersAndAcquisitions, Technology

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