BSNL, MTNL operating positive in first half of FY 2020-21: Department of Telecommunications
The Department of Telecommunications said on Monday that the public sector telecom companies BSNL and MTNL have shown positive business in the first half of FY 2020-21. The Department of Telecommunications also said that the process of allocation of spectrum for 4G services across India including Delhi and Mumbai to Bharat Sanchar Nigam Limited (BSNL) has started and funds have been provisioned for this in FY 2020-21. The department said in its 2020 annual review that a total of 92,956 employees of both public sector companies opted for the voluntary retirement scheme (VRS) and retired on 31 January 2020. “BSNL and MTNL (Mahanagar Telephone Nigam Limited) have reduced their salary expenditure by about 50 percent (about Rs. 600 crore per month) and 75 percent (about Rs. 140 crore per month, respectively),” the review said.
BSNL and MTNL’s EBITDA (earnings before interest, tax, depreciation and debt amortization) turned positive in the first half of 2020-21. Simply put, EBITDA shows the operating performance of a company. Apart from this, BSNL and MTNL have been given sovereign guarantee of Rs 15,000 crore, on the basis of which they have raised funds from the market for restructuring existing high-cost loans.
Comprehensive revival plan designed for both telecom companies includes a reduction in the cost of staff through VRS, allocation of spectrum for 4G services, emphasis on increasing income from land and buildings, allocation of fiber assets of BSNL and MTNL, several measures have been taken, including loan restructuring, through guarantees.
Apart from this, in-principle approval has also been given to the merger of BSNL and MTNL. According to the review, the Department of Telecommunications also played an important role in the management of the Covid-19 epidemic and the Department developed the Quarantine Alert System. Apart from this, more than 300 crores SMS were sent to citizens in 10 regional languages for awareness regarding the Covid-19 epidemic.
