Opinion | The logic of necessity

The government, as reported, is considering a ₹74,000 crore bailout plan for the bleeding state-owned telecom companies Bharat Sanchar Nigam Ltd (BSNL), which operates across India, and Mahanagar Telecom Nigam Ltd (MTNL), which runs telephone services in Mumbai and Delhi. The proposed bailout package includes a handsome exit package for employees, including a good golden handshake scheme. Also, the plan earmarks sums for the acquisition of airwave spectrum and capital allocation. In all, the government expects these companies to shape up rather than ship out. For observers keen on a sell-off of these state-owned utilities, this is a disappointment. The package money, they argue, would be better spent elsewhere even as these two are placed in private hands.