DOT releases Rs. 171 crore for paying salaries to MTNL employees

The department of telecom (DOT) has released Rs 171 crore to cash-strapped MTNL for paying salaries to employees.

"We have given Rs. 171 Crore to MTNL and CMD was instructed to pay the salaries of employees positively and as far as BSNL is concerned, unions have agreed that all the dues of employees will be paid before Holi," a senior official from DOT said.

A Senior DoT official also said that "BSNL will pay all salaries and dues of its employees about Rs. 850 Crore before Holi, that is 21st March."

However, BSNL issued a statement and said "The salary of BSNL employees in Kerala, J&K and BSNL Corporate office (Excluding senior officers and Board) has already been disbursed. The salary for remaining circles shall be disbursed before 21st March 2019 through its internal accruals.

Meanwhile, there is a report by Business Standard DOT is considering bailout package of Rs 13,000 crore for BSNL.

"The banks are now reluctant to even give short term loans to BSNL. The company's total loss in FY'19 is likely to be Rs 7000 crore, including Rs 4,000 crore operational loss due to depreciation," BS quoted company official who do not wish to be named.

In fact, there is another report which says this development came after Telecom Minister Manoj Sinha met Finance Minister Arun Jaitley to discuss the ongoing salary crisis in BSNL.

To recall, this year in February BSNL also said that the ministry is in the process of finalizing a proposal for revival of PSU.