{"id":221452,"date":"2019-10-24T14:00:26","date_gmt":"2019-10-24T08:30:26","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=221452"},"modified":"2019-10-25T22:14:03","modified_gmt":"2019-10-25T16:44:03","slug":"union-cabinet-approves-revival-plan-of-bsnl-and-mtnl-and-in-principle-merger-of-the-two","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/10\/24\/union-cabinet-approves-revival-plan-of-bsnl-and-mtnl-and-in-principle-merger-of-the-two\/","title":{"rendered":"Union Cabinet approves revival plan of BSNL and MTNL and in-principle merger of the two"},"content":{"rendered":"

The Union Cabinet approved the proposal for revival of BSNL and MTNL by administrative allotment of spectrum for 4G services, debt restructuring by raising of bonds with sovereign guarantee, reducing employee costs, monetisation of assets and in-principle approval of merger of BSNL & MTNL<\/strong><\/span>.<\/p>\n

The following was approved by the cabinet:-<\/strong><\/p>\n

    \n
  1. Administrative allotment of spectrum for 4G services to BSNL and MTNL so as to enable these PSUs to provide broadband and other data services. The said Spectrum will be funded by the Government of India by capital infusion in these PSUs at a value of Rs 20,140 Cr in addition; the GST amount of Rs 3,674 Cr to this spectrum value will also be borne by the Government of India through Budgetary resources. By using this spectrum allotment, BSNL and MTNL will be able to deliver 4G services, compete in the market and provide high speed data using their vast network including in rural areas.<\/li>\n<\/ol>\n

    2. BSNL and MTNL will also raise long-term bonds of Rs 15,000 Cr for which sovereign guarantee will be provided by the Government of India (GoI). With the said resources, BSNL and MTNL will restructure their existing debt and also partly meet CAPEX, OPEX and other requirements.<\/p>\n

    3. BSNL and MTNL will also offer Voluntary Retirement to their employees, aged 50 years and above through attractive Voluntary Retirement Scheme (VRS), the cost of which will be borne by the Government of India through budgetary support. The ex-gratia component of VRS will require Rs. 17,169 Cr in addition, GoI will be meeting the cost towards Pension, Gratuity and Commutation. Details of the scheme will be finalised by BSNL\/MTNL.<\/p>\n

    4. BSNL and MTNL will monetise their assets so as to raise resources for retiring debt, servicing of bonds, network upgradation, expansion and meeting the operational fund requirements.<\/p>\n

    5. In-principle merger of BSNL and MTNL<\/p>\n

    It is expected that with the implementation of said revival plan, BSNL and MTNL will be able to provide reliable and quality services through its robust telecommunication network throughout the country including rural and remote areas.<\/p>\n

    \n

    Ministry of Communications<\/strong><\/p>\n

    [Press Release dt. 23-10-2019]\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

    The Union Cabinet approved the proposal for revival of BSNL and MTNL by administrative allotment of spectrum for 4G services, debt restructuring <\/p>\n","protected":false},"author":8808,"featured_media":209514,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[29535,4],"tags":[38039],"class_list":["post-221452","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cabinet_decisions","category-legislationupdates","tag-revival-plan-of-bsnl-and-mtnl"],"yoast_head":"\nUnion Cabinet approves revival plan of BSNL and MTNL and in-principle merger of the two | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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The managing directors of Bharti Airtel , Vodafone,\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":240398,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/12\/09\/cabinet-approves-provision-of-submarine-optical-fibre-cable-connectivity-between-mainland-and-lakshadweep-islands\/","url_meta":{"origin":221452,"position":3},"title":"Cabinet approves Provision of Submarine Optical Fibre Cable Connectivity between Mainland and Lakshadweep Islands","author":"Bhumika Indulia","date":"December 9, 2020","format":false,"excerpt":"Union Cabinet has given its approval for Provision of Submarine Optical Fibre Cable connectivity between Mainland (Kochi) and Lakshadweep Islands (KLI Project). The Project envisages provision of a direct communication link through a dedicated submarine Optical Fibre Cable (OFC) between Kochi and 11 Islands of Lakshadweep viz. Kavaratti, Kalpeni, Agati,\u2026","rel":"","context":"In "Cabinet Decisions"","block_context":{"text":"Cabinet Decisions","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/cabinet_decisions\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":281703,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/01\/16\/classification-of-retirees-of-bsnl-vrs-2019-distinct-from-those-superannuating-in-normal-course-clear-violation-article-14-16-of-the-constitution-delhi-high-court-legal-research-updates-news\/","url_meta":{"origin":221452,"position":4},"title":"Classification of retirees of BSNL VRS-2019 as distinct from those superannuating in normal course is a clear violation of Article 14 and 16 of the Constitution: Delhi High Court","author":"Editor","date":"January 16, 2023","format":false,"excerpt":"The Delhi High Court held that the engagement of BSNL VRS-2019 retirees in any Central Public Sector Enterprises\/Government department on contractual\/consultancy basis, for which the retired employees on superannuation in due course were eligible for consideration, was not in violation of Clause 8 (iii) of BSNL Voluntary Retirement Scheme-2019.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/12\/MicrosoftTeams-image-418.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":6309,"url":"https:\/\/www.scconline.com\/blog\/post\/2014\/12\/24\/penalties-imposed-upon-airtel-and-vodafone-by-department-of-telecommunications-set-aside\/","url_meta":{"origin":221452,"position":5},"title":"Penalties imposed upon Airtel and Vodafone by Department of Telecommunications, set aside","author":"Sucheta","date":"December 24, 2014","format":false,"excerpt":"Telecom Disputes Settlement and Appellate Tribunal (TDSAT): Rs 650 crore fine on Bharti Airtel as well as Rs 100 crore on Vodafone imposed by Department of Telecommunications, has been set aside by TDSAT as the Tribunal found the penalties disproportionate to the violations of the terms of the Licence. Earlier,\u2026","rel":"","context":"In "Tribunals\/Commissions\/Regulatory Bodies"","block_context":{"text":"Tribunals\/Commissions\/Regulatory Bodies","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/tribunals_commissions_regulatorybodies\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/221452","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=221452"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/221452\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/209514"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=221452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=221452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=221452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}