MTNL to tap internal accruals for paying April salaries: CMD

Telecom Department has prepared a revival plan which is expected to be taken up by the Cabinet soon

Crisis-ridden MTNL, whose revival package is in the works, has exuded confidence that it would not face any challenge in payment of April salaries to its 22,000 employees, as it plans to tap internal accruals and available cash.

The comment assumes significance as distressed telecom PSUs Mahanagar Telephone Nigam Ltd (MTNL) and Bharat Sanchar Nigam Ltd (BSNL) are saddled with massive debt and have faced problems in clearing staff salaries in the recent past.

MTNL Chairman and Managing Director PK Purwar told PTI that the company will be able to pay April wages totalling about ₹ 200 crore from internal accruals and its existing cash balance.