Asset sale of BSNL and MTNL.

Since MTNL and BSNL has reported losses over the nine of the past 10 years and since 2010 respectively, the alternate mechanism group (AM) headed by FM Nirmala Sitharam , has proposed asset sale of both the companies.

The AM have already approved sale of eleven properties of BSNL and six of MTNL worth 26000 crore. The total debt on both the companies is Rs.40000 crore half on each. The original proposal had 20 assets of BSNL and 10 of MTNL including their telecom factories and health centers. The two will monetize assets worth Rs.37, 500 crore in next 3 years. The final approval of transaction will be done by AM after finalization from transaction advisor and actionnaire.

In October , the union government approved a 69000 crore revival package for BSNL and MTNL of which 20,140 crore was for purchase of fourth generaton technology spectrum, 3674 crore for goods and services tax to be paid on spectrum allocation the companies raising Rs 15,000 crore in ddebt on a sovereign guarantee and the government funding a 17,160 crore retirement package and another Rs.12,768 crore on retirement liability. This includes the merging the two loss making entities, monetizing their assets and giving a retirement package to employees. The aim is for the combined entity to become profitable in two years. The issue of bonds will be for restructuring the debt and on other expenses. Around rs.92000 employees of BSNL and MTNL have opted for a voluntary retirement scheme. Around 100,000 from BSNL were eligible ,of about 150,000 staffers. Each will get an amount equal to 35 days salary for each completed year of service and 25 days salary for every year of service left until superannuation.