The company has received interest from 14,387 employees for the voluntary retirement scheme which Kumar expects will result in annual savings of Rs 1,700 crore for MTNL. The loss-making PSU has a total of 18,422 employees.
The company looks to realise around Rs 5,000 crore from the sale of its land parcels located at prime locations of Mumbai like Vasai hill, Mulund, Simpholi etc.
"MTNL has assets at all the prime locations. Residential as well as commercial complexes can be developed on these properties. Around Rs 1,000 crore worth assets have been initiated for monetisation in Delhi also," Kumar said.
MTNL shops-cum-office complexes in seven DDA markets in Delhi along with 96 quarters in NOIDA and 398 quarters purchased by MTNL in various housing complexes in Mumbai are also going to be for monetisation in the first phase, he said.
The company has started vacating prime office space Khurshid Lal at Janpath and also some parts of its corporate office in CGO building.
"I am going to substantially vacate corporate office also. MTNL is expecting to earn around Rs 500600 crore per annum through renting," Kumar said.
The company had posted a loss of Rs 3,388.07 crore and a revenue of Rs 2,085.41 crore in 2018-19. The total debt on the company is around Rs 20,000 crore.
The finance cost of MTNL was around 50 per cent of the revenue. The government has approved a Rs 68,751-crore revival package for loss-making BSNL and MTNL, including 4G spectrum allocation and voluntary retirement scheme.
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.