August 12, 2020 3:35:56 am
In an effort to streamline its services and improve profitability, debt-laden Mahanagar Telecom Nigam Limited (MTNL) has decided to focus more on business-to-business, corporate as well as clients in government rather than individual customers, senior officials of the company said.
The company will keep operating its business-to-customer segments, but will focus its energies more on getting corporate clients, the officials said.
MTNL will also try and make payments on its bank loans on time to avoid any default or paying penalties on interest payments, officials said. The telco has a total debt of Rs 20,000 crore.
Last year, the central government had approved a Rs 69,000 crore plan for revival of MTNL and Bharat Sanchar Nigam Limited (BSNL), which also included the merger of the two telcos. Later, employees at both the companies were offered a voluntary retirement scheme (VRS) for which nearly 93,000 staffers opted.
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MTNL officials had then said that with nearly 14,000 of their employees opting for VRS, their employee costs would come down by up to 75 per cent.
The company has also allowed its remaining 4,000 staff members to use their personal vehicles for official purposes and claim reimbursements on the same to cut operation and maintenance costs of buying new vehicles or hiring them on lease. For staffers in Mumbai, the telco has chartered a bus to provide pick-up and drop facilities, officials said.
“We want to cut costs at all possible points,” an official said.
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