wordpress blog stats
Connect with us

Hi, what are you looking for?

, , ,

BSNL CMD PK Purwar takes additional charge of MTNL

BSNL’s Chairman and Managing Director PK Purwar took additional charge of MTNL, the state-owned telco said yesterday in a BSE filing. ET Telecom first reported the move on 14 April. Purwar’s appointment seems to be a step towards the eventual merger of MTNL and BSNL, announced in October 2019. This isn’t Purwar’s first time heading MTNL — he was appointed thrice as the telco’s CMD in a temporary basis in 20142016, and 2017. Purwar was appointed for a five year term in 2017, but gave up the post in 2019 after being appointed as BSNL’s CMD.

Telecom infrastructure association TAIPA wrote to Purwar on 11 April asking that the state-owned telcos’ dues to tower companies be paid immediately.

The nod for a BSNL–MTNL merger follows a 2017 parliamentary report that recommended it as a way for the struggling state-owned telcos to survive the onslaught of competition that they’re unable to weather. Especially since Jio’s entry in 2016, the state-owned telcos have been struggling, especially as they were already in a weaker financial position than Vodafone, Idea and Airtel at the time of Jio’s entry. (Read our summary of the parliamentary report.)

Four steps for MTNL-BSNL revival

The union cabinet has provided a four-way revival plan for BSNL and MTNL.

  1. Allotment of 4G spectrum: The government has approved the administrative allotment of 4G spectrum services to BSNL and MTLNL which will enable them to provide broadband and other data services. It will be funded by the central government by capital infusion of Rs 20,000 Crores. The centre will also bear the GST amount of Rs 3,674 crore through budgetary resources.
  2. Telcos to raise long-term bonds: BSNL and MTNL will raise long-term bonds of Rs 15,000 crore for which sovereign guarantee will be provided by the central government. BSNL and MTNL will also restructure their existing debt and meet the capital expenditure, operational expenditure and other requirements.
  3. Voluntary retirement for employees: BSNL and MTNL will offer voluntary retirement (VR) to their employees who are aged above 50 years through VR scheme, the cost will be born by the central government through budgetary support. The ex-gratia component of VRS will require additional funds of Rs 17,169 crore. The government will also meet the cost of pension, gratuity, and commutation.
  4. BSNL and MTNL to monetise the assets: The telecom companies will monetise their assets so as to raise resources for debts, servicing of bonds, up-gradation of network, expansion, and meeting operational fund requirements. Both the companies have collected debt of Rs 40,000 crore.

Opposition by Finance Ministry: The Finance Ministry had previously opposed any financial backing to BSNL and MTNL and said that any upfront cost support to them would be a huge burden on the budgetary resources of the government. Also, Department of Telecommunication is seeking comments from the Finance Ministry on the cabinet memo circulated to the nodal ministries in regards to the merger.

Advertisement. Scroll to continue reading.
Written By

I cover the digital content ecosystem and telecom for MediaNama.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



India and US come to terms on how to deal with the equalisation levy in light of the impending Global Tax Deal.


Find out how people’s health data is understood to have value and who can benefit from that value.


The US and other countries' retreat from a laissez-faire approach to regulating markets presents India with a rare opportunity.


When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.


The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ