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Don't bet on BSNL, MTNL's revival

The four-point turnaround plan for the public sector telcos is a set of necessary steps but is far from sufficient

Rahul Khullar 

Rahul Khullar

The government just announced a “revival plan” for the ailing public sector telcos, BSNL and MTNL. The four-point plan comprises: Raising cash through issue of sovereign bonds (Rs 15,000 crore) allocating 4G spectrum (at government cost) to create a new revenue stream; monetising assets (mainly land) to mobilise Rs 38,000 crore; and reducing employee strength through an attractive voluntary retirement scheme (VRS).

The announcement should be welcomed: The government has finally decided to act. First, some history. MTNL has been in serious distress for over a decade — ...

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First Published: Thu, October 31 2019. 00:58 IST
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