Govt proposes Rs 74k cr bailout for BSNL, MTNL

NEW DELHI: The government is considering a Rs 74,000-crore bailout plan for the bleeding state-owned telecom companies BSNL and MTNL. The strategy involves offering a handsome exit package to thousands of employees, including an additional 5% compensation (ex-gratia) to make the VRS attractive, while providing for 4G spectrum and capital expenditure. BSNL is the country’s biggest loss-making PSU (estimated Rs 13,804 crore in FY19), while MTNL was third with a loss of Rs 3,398 crore. Only Air India has a higher loss than MTNL. If the package goes through, the two telecom PSUs will overtake AI as the biggest drain on the national exchequer.