Debt-laden MTNL seeks DoT bailout to stay afloat, submits plan to govt

Reeling from debt of Rs 20,000 crore, Mahanagar Telephone Nigam (MTNL) has submitted a plan to the government to ensure its survival. This includes converting its loans into sovereign guarantee, giving up 3G spectrum, revision of employees’ pay, and introducing a voluntary retirement scheme (VRS).

If all else fails, the company said, the government should take over MTNL or dissolve, with the only condition that all its employees should be absorbed by the Department of Telecommunications (DoT).

Bharat Sanchar Nigam, the other government-owned telecom company, has also made a bailout plea.