Everything You Should Know About BSNL Revival Package

After two years of waiting, BSNL employees have approached the Prime Minister's office to speed up the company's revival process. Besides, the employees seek permission to upgrade their existing network to offer 4G services. Notably, in 2019, the Department of Telecommunication (DoT) announced a revival package for the state-run telecom operators. The Sanchar Nigam Executives Association (SNEA) said that the revival is getting delayed due to 4G services, debt, and land monetization issues.

"The new tender for 4G equipment may be dealt separately without clubbing with the upgradation. As and when indigenous core is ready, the equipment can be shifted to it, fully complying with the government policy," SNEA was quoted by ET. In addition, the 13,000 executives of the telecom operator asked the top management to upgrade 49,300 base transceiver stations with the investment of Rs. 5,100 crores to offer 4G services in all circles.

BSNL And MTNL Revival Package: Details

In order to help both state-run telecom operators BSNL and MTNL, the DoT announced a revival package of Rs. 69,000 crores. This package is expected to help both operators financially. Under the revival plan, the ministry announced Voluntary Retirement Scheme (VRS) for employees who are above 53 years. The VRS used to offer 125 percent of the salary, gratuity, and pension for seven years (means until employees turn 60).

It is worth noting that 78,300 employees of the telecom operators choose the same scheme. The VRS will enable BSNL to save 50 percent of the exact cost, whereas MTNL's 14,378 employees choose for the same scheme. Besides, under this revival package, it will fund the entire 4G process of the operator. The DoT approved assets monetization close to Rs. 38,000 crores to pay its entire debt. Moreover, the ministry announced the merger between both MTNL and BSNL. However, the situation has been changed and the ministry defers its plans of merging two telecom operators.

Why DoT Said No To BSNL And MTNL Merger

The Government has finally said no to the merger as MTNL is under a huge debt. Apart from debt, there are several issues like both have different salary structures. For the unaware, MTNL has to pay Rs. 20,000 crore debt and if the merger happens, then there are high chances that BSNL might have to clear them.

What About BSNL 4G Plans?

Even though BSNL is late in bringing the 4G network, the telecom ministry expects that the operator might complete the coverage in two years. The telecom operator has also invited all Domestic equipment makers to participate in its 4G tender.

"BSNL will follow the applicable rules, guidelines or public procurement orders of the government, including rule 144(xi) of the General Financial Rules, 2017, in this regard," Minister of State for Communications, Sanjay Dhotre said. He also said that the Government is not in a favour of removing the 2G network from India. Furthermore, BSNL has launched its 4G services in two cities of Chattigarsh -- Bilaspur and Korba. Besides, the operator is also offering free 4G SIM to its new customers in Tamil Nadu until March 31, 2021.