Budget 2020: BSNL, MTNL to get Rs 37,640 crore from govt in FY-21

State-owned telecom firms BSNL and MTNL will get fund infusion of around Rs 37,640 crore mainly for 4G spectrum and implementation of voluntary retirement scheme, according to Budget document 2020-21.

The government will infuse Rs 14,115 crore in BSNL and Rs 6,295 crore in MTNL for 4G spectrum. Besides, Rs 2,541 crore and Rs 1,133 crore will be provided to BSNL and MTNL, respectively as grant in aid for payment of GST.

MTNL has reported losses in nine of the past 10 years and BSNL too has been ringing in loss since 2010. The total debt on both the companies is at Rs 40,000 crore, of which half of the liability is on MTNL alone.

The capital infusion for 4G spectrum will help the debt-ridden PSUs to compete with private sector players who have rolled out pan-India 4G services.

Both the firms will get Rs 9,889.65 crore cumulatively for ex-gratia payment for voluntarily retiring employees and Rs 3,294.77 crore for implementing voluntary retirement scheme (VRS).

Over 78,300 BSNL employees and 14,378 at MTNL have opted for VRS.

MTNL will also get financial support of Rs 372 crore on account of minimum alternate tax, refund of CDMA spectrum, payment of interest on MTNL Bonds and fiber-to-the-home (FTTH) service.

Besides, state-owned telecom manufacturing unit Indian Telephone Industries Ltd will get fund infusion of Rs 405 crore in the upcoming fiscal year.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel