MTNL submits comprehensive revival plan

Cash-strapped Mahanagar Telephone Nigam (MTNL) has submitted a comprehensive revival plan which includes approval for a monetisation scheme, introducing a voluntary retirement scheme (VRS), giving up 3G spectrum, converting its loans into sovereign guarantees and revision of employees’ pay.

In a letter to the Department of Telecommunication, MTNL, which operates in Delhi and Mumbai, said loans to the tune of Rs 20,000 crore was taken to clear statutory dues. “The government must convert these with sovereign guarantee and take responsibility for the principal and interest. This would save the company Rs 2,000 crore per annual interest payment,” it said.