BSNL MTNL to be merged VRS package to be offered to employees

NEW DELHI . The Union Cabinet today approved merger of loss-making telecom firms BSNL and MTNL as part of a revival package that includes raising sovereign bonds, monetising assets and voluntary retirement scheme (VRS) for employees. The revival package for BSNL and MTNL includes raising of ?15,000 crore sovereign bonds and monetising ?38,000 crore of assets in next four years.

 

BSNL has 1.76 lakh employees across India while MTNL has around 22,000 employees. The employee cost of BSNL is 75% and that of MTNL is 87% of their total income.