DCC seeks turnaround strategy of loss-making BSNL, MTNL

A proposal to clear demands put forth the firms was considered by the DCC, formerly known as Telecom Commission.

The Centre wants loss-making Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) to explain their turnaround strategy and provide assurance to achieve higher revenue for getting further financial support. Both state-owned firms have sought financial assistance from the government in addition to 4G spectrum and approvals for asset sales as part of their revival plans.

“Members of the Digital Communications Commission (DCC) wanted to know what is the revival plan … They also want to know how they will ensure that if they are given all the support, how exactly can the commission foresee that they will achieve higher revenue,” a senior official present at the DCC meeting on Thursday said.

A proposal to clear demands put forth the firms was considered by the DCC, formerly known as Telecom Commission. The panel is chaired by Telecom Secretary Aruna Sundararajan and comprises NITI Aayog CEO Amitabh Kant, Economic Affairs Secretary SC Garg, Industries Secretary Ramesh Abhishek, IT Secretary Ajay Prakash Sawhney among others. Both firms have asked for permissions to monetise land assets and voluntary retirement scheme on Gujarat model. Under the model, an amount equivalent to 35 days of salary for each completed year of service, and 25 days of salary for each year of service left till retirement is offered.