BSNL, MTNL to get refund for giving up spectrum

BSNL had paid over Rs 6,500 crore, while MTNL had paid about Rs 4,500 crore in 2010

GN Bureau | September 13, 2013



The group of ministers (GoM), headed by finance minister P Chidambaram, on Thursday, decided to refund over Rs 11,000 crore to BSNL and MTNL, the two state-run players, for returning broadband wireless access (BWA) spectrum.

Telecom minister Kapil Sibal said that the GoM took firm decisions, one in relation to pension of MTNL employees, the second in relation to the spectrum that was allocated both to BSNL and MTNL in the 2.5 GHz band. These decisions would now be taken to the cabinet for approval.

Both the state-run players had requested the government to refund the amount they paid in 2010 for the BWA spectrum after they surrendered the airwaves as this had seriously depleted their cash reserves. BSNL had paid over Rs 6,500 crore, while MTNL had paid about Rs 4,500 crore in 2010.

With regard to the pension liability of MTNL staff, which will cost Rs 570 crore annually, the state-run company will pay Rs 170 crore and the rest will be paid by the government.

High wage costs had been a major reason for these companies running into losses. The employee cost as a percentage of revenue is over 103 per cent for MTNL and 49 per cent for BSNL compared to the industry average of about 5 per cent.

MTNL’s net loss widened to Rs 5,321.12 crore in 2012-13 from Rs 4,109.78 crore in FY’12. BSNL is expected to run up losses to the tune of Rs 8,198 crore.

Comments

 

Other News

When religion, politics and Bollywood come together

Tavleen Singh, noted journalist and political commentator, has turned to fiction, with her debut novel ‘The Actor’ (HaperCollins India). Set in the near future, it has a superstar, Amit Singh, turning to politics, when the political landscape is dominated by prime minister Guru Gaynendraj

Cabinet approves setting up of Integrated Transport & Logistics Authority

The union cabinet, chaired by prime minister Narendra Modi, on Tuesday approved the setting up of a Special Purpose Vehicle (SPV), called Integrated Transport & Logistics Authority (ITLA), to strengthen research, planning, appraisal, monitoring and impact assessment within the broad domains of Transp

Why foundational literacy and numeracy is key to school education

Foundational Literacy and Numeracy (FLN) are often described as the building blocks of education. Yet, their significance goes well beyond a child’s ability to read a sentence, write a response or solve a basic mathematical problem. These foundational skills shape how children understand the world,

When police data becomes the algorithm

For decades, policing has followed a familiar sequence: a crime occurs, the police respond, an investigation produces records and those records become part of the institutional memory of the criminal justice system. Artificial intelligence is beginning to alter that sequence. Instead of merely recording

Before India voted, the framers worried about the referee

“We are making a Constitution forever and not only for today.” Shibban Lal Saksena said this in the Constituent Assembly on June 15, 1949. He was warning that a ruling party might one day choose a loyalist to run India’s elections. Seventy-seven years later, the Supreme Court is wrestli

Delhi moves to real-time traffic management

The Cabinet Committee on Economic Affairs (CCEA), chaired by prime minister Narendra Modi, has approved implementation of the ITMS Project by Delhi Police at an estimated cost of Rs.1,789.52 crore, inclusive of taxes. The project will cover 42 identified traffic corridors and will be implemented in three

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter