Mumbai, October 8: The ministry of Finance has recommended that the Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) be closed down. According to reports, the public sector entities are on the list of companies that can be closed down, said reports. The Financial Express reported that the government is considering shutting down the companies as operational costs estimates are greater than the expenses of winding up the company. Government Grants Rs 1,000 Crore to BSNL, MTNL for Clearing February Wages.
According to a report in the Financial Express, the department of telecommunications (DoT) had proposed injecting Rs 74,000 crore in BSNL and MTNL. However, the finance ministry reportedly rejected the proposal. Instead it was suggested that the companies be closed down. MTNL Landline Services of 1,500 Mumbai Customers Yet to Be Restored, Two Months After Fire Incident at State-Owned Telecom’s Building in Bandra.
The DoT had argued that the cost of closing down the company would be Rs 95,000 crore. But the Finance Ministry said that the cost would not be that high.
The question about the employees is paramount as of now. However, not all employees will be provided with VRS, said the report. The BSNL has 1.65 lakh employees overall. Even the strategic disinvestment of the BSNL and MTNL was ruled out, said the report.