End Of The Road For BSNL, MTNL? Government Wants The Companies Shut As 1.98 Lakh Employees Face Bleak Future

Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) were the two names synonymous with telecommunication in India for decades.

But over the years, especially since the early 90s when the sector was finally opened to private players the two state-run companies have been finding it difficult to have a competitive edge.?

BCCL

The two companies have been bleeding money to the point that it has become unsustainable to operate them.

Now the government may do exactly that. According to reports, the Finance Ministry has suggested that both the companies should be closed down.

According to a report in The Financial Express, the ministry has also rejected a proposal of the department of telecommunications (DoT) to pump in a massive Rs 74,000 crore to revive the two telcos.

BCCL

As per the ministry, the total expense for the closure including paying for the voluntary retirement scheme to all 1.65 lakh BSNL employees and its debt repayment will be lesser than Rs 95,000 crore. The telecom department had sought Rs 74,000-crore as a revival package for the company.

While the proposal to shut down the two pioneering companies may come as a shock to many, it is not surprising.

BSNL has been struggling for some time now and the salaries of its employees have not been paid for months, leaving thousands of them in the lurch.

BCCL

Last month it was reported that BSNL will ask nearly 50 percent of its employees to resign.?

MTNL too had been defaulting on salary payments for some months.?

BSNL has 1.76 lakh employees across India while MTNL has around 22,000 employees.

Total monthly salary expenses of BSNL are in the range of ?750-850 crore while that of MTNL is around ?160 crore.?