First government denies investing Rs. 74,000 for revival of MTNL and BSNL, now Finance Ministry suggests complete closure.
Not very long ago, government rejected investment request made by DoT (Department of Telecommunications) of Rs. 74,000 to revive these PSUs; and now the Finance Ministry is suggesting that the companies must be shut down as they are struggling in the industry.
DoT said if these two state run firms are closed it will cost Rs. 95,000 crore which includes the debt repayment and huge VRS (Voluntary Retirement Scheme) of 1.65 lakh employees of these two firms. However officials said closure of these two firms will not amount this much money.
A huge chunk of employees in BSNL and MTNL came from ITS (Indian Telecommunications Service) and hence after shutting down the firms can be deployed into other departments, reducing the cost of VRS substantially and thus reducing the cost of shutting down the firms.