Govt releases Rs 171-cr pending dues to MTNL for salaries; BSNL to clear Rs 850-cr wage outstanding by 20 March

BSNL chairman and MD Anupam Shrivastava said the company expects internal accruals of around Rs 850 crore in this month and the entire amount will be used for disbursal of salaries.

Press Trust of India March 14, 2019 11:50:26 IST
Govt releases Rs 171-cr pending dues to MTNL for salaries; BSNL to clear Rs 850-cr wage outstanding by 20 March
  • Both companies failed to pay salaries of their employees for last month, according to employees' representatives

  • It is estimated that 16,000 MTNL employees and 50 percent of BSNL employees will retire in the next 5-6 years

  • The PSUs sought permissions to monetise their land assets and support for VRS for its employees

New Delhi: The government has released pending dues of Rs 171 crore to cash-strapped Mahanagar Telephone Nigam Ltd (MTNL) for paying February salaries to employees, a senior official said.

On the other hand, Bharat Sanchar Nigam Ltd (BSNL) will clear salary dues of around Rs 850 crore by 20 March from its internal accruals.

Both companies have failed to pay salaries of their employees for last month, according to employees' representatives.

Govt releases Rs 171cr pending dues to MTNL for salaries BSNL to clear Rs 850cr wage outstanding by 20 March

Representational image. Reuters.

BSNL chairman and MD Anupam Shrivastava said the company expects internal accruals of around Rs 850 crore in this month and the entire amount will be used for disbursal of salaries.

"There will be no pending amount following this disbursal," he said.

The company has informed its employee representatives that the disbursal of salaries would be made by 20 March.

BSNL spokesperson Sanjay Kumar Sinha said the salaries of BSNL employees in Jammu and Kashmir, Kerala and BSNL corporate office (excluding senior officers and board members) have already been released.

A senior DoT official said MTNL has been provided with Rs 171 crore on Tuesday as part of internal settlement.

Both BSNL and MTNL have been ailing due to decisions taken by the government in the past including transfer of large number of DoT employees to these PSUs and allocation of expensive spectrum for mobile services without giving them any choice.

BSNL has 1.76 lakh employees across India and MTNL has around 22,000. It is estimated that 16,000 MTNL employees and 50 percent of BSNL employees will retire in the next 5-6 years.

The PSUs have approached the government for relief and partial equity investment in line with industry practice to compete in the market.

Both firms have sought permissions to monetise their land assets as well as support for voluntary retirement scheme (VRS) for its employees.

MTNL, which operates in only Delhi and Mumbai, expects that asset monetisation and other measures can help the company is doing away with the debt of around Rs 19,000 crore.

BSNL, which has the lowest debt of Rs 14,000 crore among all telecom operators, has sought 4G spectrum across India through equity infusion of Rs 7,000 crore to help it compete in the market.

Updated Date:

also read

BSNL rolls out VRS, expects up to 80,000 employees to avail scheme; company will save Rs 7,000 cr in wage bill
Business

BSNL rolls out VRS, expects up to 80,000 employees to avail scheme; company will save Rs 7,000 cr in wage bill

Within days of government approving a relief package for the ailing corporation, state-owned BSNL has rolled out a voluntary retirement scheme for its employees, and said it expects 70,000-80,000 personnel to opt for it leading to savings of about Rs 7,000 crore in the wage bill

Nearly 75,000 BSNL employees have opted for voluntary retirement scheme so far: Chairman PK Purwar
Business

Nearly 75,000 BSNL employees have opted for voluntary retirement scheme so far: Chairman PK Purwar

As many as 75,000 employees of Bharat Sanchar Nigam Ltd (BSNL) have already opted for the VRS scheme which rolled out recently, Chairman and Managing Director of the state-owned telecom corporation PK Purwar said on Thursday

Over 77,000 employees have opted for BSNL voluntary retirement scheme: Official
Business

Over 77,000 employees have opted for BSNL voluntary retirement scheme: Official

Over 77,000 employees of state-owned BSNL have opted for the recently launched VRS so far, according to an official