Diwali bonanza: BSNL-MTNL to be merged

Ending days of speculation on the fate of Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Limited (MTNL), the Union Cabinet on Wednesday announced a bail out package that includes merger of the two companies, strengthening the finances through sovereign bonds, giving out voluntary retirement scheme (VRS) and providing 4G spectrum at administrative rates. The entire package would cost around ₹70,000 crore.

The package includes raising of ₹15,000 crore sovereign bonds to meet the immediate capital requirement of both the companies, 4G spectrum allocation worth ₹20,140 crore, ₹29,937 crore for VRS covering 50 per cent of their employees, and ₹3,674 crore for goods and services tax that will be levied on allocation of radiowaves.