BSNL MTNL Merger - Union Cabinet approved the proposal of BSNL and MTNL

BSNL MTNL Merger - Union Cabinet approved the proposal of BSNL and MTNL

Cabinet

Union Cabinet approves revival plan of BSNL and MTNL and in-principle merger of the two

Spectrum of 4G to be allocated to the Telecom PSEs

Funding through capital infusion of over Rs 20,000 Crore

Sovereign guarantee for long term bonds of Rs 15,000 Crore

Union Government to bear cost of attractive VRS

23 OCT 2019

The Union Cabinet today approved the proposal for revival of BSNL and MTNL by administrative allotment of spectrum for 4G services, debt restructuring by raising of bonds with sovereign guarantee, reducing employee costs, monetisation of assets and in-principle approval of merger of BSNL & MTNL.

Also Read: Claim of BSNL on account of pay & allowances etc. to its employees working on loan basis in DoT/Field Units

The following was approved by the cabinet:-

1. Administrative allotment of spectrum for 4G services to BSNL and MTNL so as to enable these PSUs to provide broadband and other data services. The said Spectrum will be funded by the Government of India by capital infusion in these PSUs at a value of Rs 20,140 Cr in addition; the GST amount of Rs 3,674 Cr to this spectrum value will also be borne by the Government of India through Budgetary resources. By using this spectrum allotment, BSNL and MTNL will be able to deliver 4G services, compete in the market and provide high speed data using their vast network including in rural areas.
2. BSNL and MTNL will also raise long-term bonds of Rs 15,000 Cr for which sovereign guarantee will be provided by the Government of India (GoI). With the said resources, BSNL and MTNL will restructure their existing debt and also partly meet CAPEX, OPEX and other requirements.
3. BSNL and MTNL will also offer Voluntary Retirement to their employees, aged 50 years and above through attractive Voluntary Retirement Scheme (VRS), the cost of which will be borne by the Government of India through budgetary support. The ex-gratia component of VRS will require Rs. 17,169 Cr in addition, GoI will be meeting the cost towards Pension, Gratuity and Commutation. Details of the scheme will be finalised by BSNL/MTNL.
4. BSNL and MTNL will monetise their assets so as to raise resources for retiring debt, servicing of bonds, network upgradation, expansion and meeting the operational fund requirements.
5. In-principle merger of BSNL and MTNL

It is expected that with the implementation of said revival plan, BSNL and MTNL will be able to provide reliable and quality services through its robust telecommunication network throughout the country including rural and remote areas.

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CGHS facilities to the retired BSNL / MTNL employees who are in receipt of pension from Central Civil Estimates – Revised mapping for determining CGHS subscription and Ward entitlement

CGHS facilities to the retired BSNL / MTNL employees who are in receipt of pension from Central Civil Estimates – Revised mapping for determining CGHS subscription and Ward entitlement

No. 4-12(12)/ 2018-PAT-Part(1)

Government of India

Ministry of Communications

Department of Telecommunications

(PAT Section)

New Delhi, dated 1st July, 2019

OFFICE MEMORANDUM

Subject: CGHS facilities to the retired BSNL / MTNL employees who are in receipt of pension from Central Civil Estimates – Revised mapping for determining CGHS subscription and Ward entitlement.

The undersigned is directed to refer to this Office Memorandum No. 4-12(11)/2012- PAT(Part) dated 31.08.2016 vide which CGHS facilities were extended to retired BSNL / MTNL employees who receive pension from Central Civil Estimates.

The rates of monthly CGHS subscription and entitlement of Wards in Private hospitals empanelled under CGHS have been revised with effect from 01-01-2017 by Ministry of Health and Family Welfare vide OM No. S.11011/11/2016-CGHS(P)/EHS dated 09.01.2017. This has necessitated corresponding revision in mapping of Pay & scales from IDA to CDA as circulated vide O.M. dated 31.08.2016.

Accordingly, Annexures to the said O.M. dated 31.8.2016 stand revised as enclosed w.e.f. 1.1.2017 to enable CGHS in deciding the rate of CGHS contribution and ward entitlement in respect of retired BSNL/MTNL employees who receive pension from Central Civil Estimates and avail CGHS facilities.

This issues with the approval of Member (Services).

Enclosures: As above

(Bulley Mishra)

Assistant Director General (PAT)

Phone 011 2303 6245

Annexure-A

CDA/IDA correspondence for deciding Monthly Contributions for availing CGHS facility

(A1) Case of BSNL retirees:

7th CPC Pay Matrix Level	Monthly Contribution
Level 1 to Level 5	Rs. 250/-
Level 6	Rs. 450/-
Level 7 to Level 11	Rs. 650/-
Level 12 and above	Rs. 1000/-

(A2) Case of MTNL retirees:

7th CPC Pay Matrix Level	Monthly Contribution
Level 1 to Level 5	Rs. 250/-
Level 6	Rs. 450/-
Level 7 to Level 11	Rs. 650/-
Level 12 and above	Rs. 1000/-

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Crucial issues related to the revival of BSNL

BSNL EMPLOYEES UNION

Centred Head Quarter

Main Recognised Representation Union,
Dada Ghosh Bhawan, 215/1, new patel Nagar,
Opp. Shadipur Bus Depot, New Delhi-110001

BSNLEU/ 604 (DEV)

06.06.2019

To,
Shn Ravi Shankar Prasad Ji,
Hon'ble Minister of Communications,
Sanchar Bhawan,
20, Ashoka Road,
New Delhi- 110001

Sir,
Sub: Crucial issues related to the revival of BSNL - reg.

At the outset, BSNLEU, the main recognised representative union In BSNL, heartily welcomes you, on your assuming change as the Hon'ble Minister of Telecommunications and IT. On this occasion, BSNLEU welcomes and also highly appreciates your statement that, BSNL and MTNL should remain healthy in the nation's interest. BSNLEU also approves your view that BSNL and MTNL need to become professional and adopt the competitive, attitude. In this connection, we also recollect the statement made by you, in your earlier tenure as the Honb'le Minister of Communications and IT, that BSNL was not allowed to grow for 10 years from 2004. BSNLEU assures to strengthen your hands, in all your endeavours to strengthen BSNL.

It is not out of context to point out here that, the entire telecom sector is stressed due to the predatory pricing being adopted by Reliance Jio. Due to this, all the telecom service providers. including Airtel and Vodafone Idea, have gone into loss. However, even under such a stressed situation, it is only BSNL, apart from Reliance Jio, which is consistently expanding its Mobile Customer bass every month. Under these circumstances, we wish to reiterate that, an early allotment of 4G spectrum to BSNL, by the government, will go a long way In speedily restoring the financial health of BSNL.
At this juncture, it is our duty to bring to your kind notice that, two Important decisions of the Union cabinet, taken in September, 2000, i.e. on the eve of the formation of BSNL, are yet to be implemented. Both these decisions are very crucial for the financial revival of BSNL The first decision is that, the government would do everything possible to keep BSNL financially viable. It is needless to state that this decision needs to be implemented in letter and spirit. The second decision is that. alt the asset and liabilities of the department would be transferred to BSNL While the liabilities stand transferred to BSNL, the assets are not transferred to BSNL. We request you to kindly look into these and to do the needful.

At this juncture, we also like to draw your kind attention to the moves presently being, made by the DoT and BSNL Management, to implement VRS, is well as the rolling back of the retirement at from 60 to 58 years, in the name of reviving BSNL's financial health. When 79,295 employees, from the present strength of 1,65,657, are going to retire In the next 4 years, ie., by April,2024, we do not understand the logic behind the urgency to implement VRS in BSNL. Similarly, as per the assurance given by the government in 2000, to the erstwhile recognised federations, only the government rules with regards to retirement age, are applicable to BSNL employees. We request you to kindly look into these aspects.

Another important aspect, connected with the revival of BSNL is that the Company is having vacant lands throughout the country, whose value is pegged at more than Rs.1 lakh crore. BSNL Management has estimated to earn Rs. 5000 crore to Rs. 10,000 crore per annum, by renting / leasing out those vacant lands. However, the DoT is yet to accord necessary approval to BSNL, for the monetization of the vacant lands. Similarly, the government of India Rule, in respect of payment of Pension Contribution, is yet to be implemented in the case of BSNL, as a result of which a huge amount is being collected in excess every year from BSNL, in the name of Pension Contribution. An early decision by the DoT in these issues, will go a long way to ensure the financial revival of BSNL.
Finally, the issues of implementation of 3rd Pay Revision to the BSNL employees, and also the issue of Revision of Pension to the BSNL retirees are, agitating the minds of the employees and the pensioners, An early, as well as positive decisions on these two issues, will greatly motivate the Executives and Non-Executives of BSNL, to contribute their mite for the Revival of BSNL.

We request you to kindly look into these issues and to ensure a positive settlement of the same.

Thanking you,

Yours sincerely,
P. Abhimanyu
General Secretary

Source: BSNL Employees Union

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7th CPC Revision of Remunerations of pre-2016 retired Government Servant engaged in PSUs viz BSNL, MTNL etc

7th CPC Revision of Remunerations of pre-2016 retired Government Servant engaged in PSUs viz BSNL, MTNL etc

File No. 03/11/2016/SEA-I (Pt-I)/Fin
Government of India
Ministry of Communications
Department of Telecommunications
(Finance Branch)

Room No. 717, Sanchar Bhawan,
20, Ashok Road, New Delhi - 110 001
Dated 23 December 2017

OFFICE MEMORANDUM

The undersigned has been directed to convey the Approval of the Competent Authority towards revision of remunerations being paid to, the retired Government servants engaged in Department of Telecommunications(Head Quarters) with effect from 1st January, 2016 as under:

(a) In the case of Government servants retired after 01.01.2016 engaged as consultant:

The consolidated fee/ remunerations for the consultants shall be restricted to an amount equal to the difference between the last basic pay (as per 7th CPC) drawn by the retired officer and basic pension (as per 7th CPC), plus dearness allowance on the difference as applicable to the Central Government Servants from time to time.

(b) In the case of Government servants retired prior to 01.01.2016:

In case of those engaged as consultants in DOT H Qrs. who retired prior to 01.01.2016 i.e. before implementation of 7th CPC, their last pay drawn shall be fixed notionally in accordance with para 4 of DOP&PW OM No.38/37/2016-P&PW(A) dated 12.05.2017 i.e., their last pay may be fixed notionally in the pay matrix recommended by the 7th CPC in the level corresponding to the pay in the pay band A and grade pay at which they retired. The consolidated fee/ remunerations for the consultants shall be restricted to an amount equal to the difference between the last basic pay arrived as above and basic pension (as per 7th CPC), plus dearness allowance on the difference as applicable to the Central Government Servants from time to time.

(c) In the case of retired officers from PSUs viz. BSNL, MTNL etc.

The remunerations of such PSU employees engaged as consultants may be fixed by multiplying both the notional basic pay as per 6th CPC and basic pension of PSU retirees by factor 2.57 and their difference plus Dearness Allowance on the difference as per 7 CPC at the rate applicable to Central Government Servants from time to time or the existing remunerations, whichever is higher.

2. Para 4 of OM No. 3-2/2009-SEA-I dated nil February, 2010 and para 1 (iv) of the approved policy for “Engagement of Consultants” issued vide OM No. 03-10/2014-SEA-I/Fin. Dated 28.02.2015 stands modified to the extent stated in para 1 of this OM w. e. f. 01.01.2016.

3. The nodal sections/wings of DOT HQ will revise the consolidated fee/remunerations in respect of the consultants Working in their wings on the basis of copy of the letter from the Department/Ministry from which they retired (giving details of revision of pension) addressed to CPAO with copy given to pensioners. The remuneration so revised should be got vetted for the first time from IFD before making payment.

4. The above revision of the consolidated fee/ remunerations as per 7th CPC and its implementation will be applicable in respect of consultants engaged in various wings of DOT HQs was well as in CCA Offices.

(Manish K Gupta)
Director (F)

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BSNL to Launch Free Roaming From 15 June, 2015

BSNL to Launch Free Roaming From 15 June, 2015

Mechanism to Control Call-Drop to be Explored

Nation-Wide Mobile Portability by July

FDI in Telecom Reaches Highest in Four Year

Wi-Fi Hotspots at all Major Tourist Places -Taj to be Inaugurated Shortly

Following is the opening statement of Sh. Ravi Shankar Prasad, Minister of Communication & IT at the press conference on one year performance.

Ministry of Communications & IT was in the news in the past unfortunately for the wrong reasons for a variety of factors. After the new Government took over, it was important to create optimism and confidence to generate hope for growth. This, in return, required transparency, good governance and faster decision-making. By the collective effort of all, we can say with assurance that all these elements have become integral to decision making and policy formulation which has created a conducive atmosphere for investment and growth. Some of the key elements of these achievements are being enumerated hereunder.

DEPARTMENT OF TELECOMMUNICATIONS

• Highest ever auction proceeds of Rs. 1,09,874 crore, against the approved reserve price of Rs 80,277 crores. This could be achieved because of good governance practices, identification of Defence Band and release of Spectrum from Defence Ministry, which has been pending for more than six years.
• Crossed 100 crore telephone connections in April 2015, the fastest increase in the last 11 months as compared to the previous three years raising national teledensity to 79.85 as against 75.23 in March 2014, 73.32 in March 2013 and 78.6 in March 2012.
• Rural teledensity grew to 48.90%, an increase of 4.57% in the last 11 months. the highest increase in the last three years (43.18 in March 2014, 41.6 in March 2013 and 39 in March 2012)
• The number of broadband connections, i.e. connections with a speed of 512 kbps or higher, increased from 65.33 million in May 2014 to 99.20 million in March 2015 with unprecedented growth of 52% in the last 10 months.
• Foreign Direct Investment (FDI) inflow in the telecom sector touched $ 2853 million in 2014-15 (upto February 2015). It was the highest in the last four years ($1307 million in 2013-14, $304 million in 2012-13, $1997 million in 2011-12 and $1665 million in 2010-11).

Initiatives to revive BSNL and MTNL

• BSNL revenue grew by 2.1% in 2014-15reversing the trend of negative growth in previous years.
• BSNL added 47 lakh active subscribers and MTNL added 2.11 lakh subscribers in 2014-15 reversing the trend of negative growth in previous years.
• BSNL is in the process of setting up 25645 new base transceiver stations (BTSs) in Phase-VII of its expansion plan at a cost of Rs 4,805 crore, its first such investment plan in over five years. 15000 such BTSs installed in the last one year.
• BSNL replacing network of landline local exchanges by IP (Internet Protocol) enabled Next Generation Network. 432 telephone exchanges and 70 lakh telephone lines are being replaced.
• MTNL is setting up / upgrading 1080 3G sites in Delhi and Mumbai each and 850 2G sites in Delhi and 616 2G sites in Mumbai.
• BSNL and MTNL have launched unlimited free local calls from landlines to any landline/mobile during night hours effective from May 1, 2015.
• BSNL is launching free national roaming.
• Hundred (100) WiFi hotspots at important tourist locations like Varanasi Ghats, Hussain Sagar Lake-Hyderabad, Bangalore, Cochin, Vijayawada etc. have been established by BSNL.

Other important initiatives

• Full Mobile Number Portability (FMNP) notified to allow subscribers to retain their mobile number across the country and enable linking the mobile to Aadhar completing the JAM (Jan Dhan-Aadhar-Mobile) trinity of unique identity.
• Bharat Net (National Optical Fibre Network – NOFN ) is the largest rural connectivity project of its kind in the world, seeking to link each of the 2.5 lakh Gram Panchayats of the country, through a Broadband Optical Fibre Network. The work of laying optical fibre network has been speeded up (by 30 times) in the last 10 months. To make the entire project more effective in tune with the Digital India programme, a committee was constituted for further improvement and speedy implementation to serve the larger purpose of Broadband to all. Conference of State IT Ministers was held to discuss the report of committee. Many State governments have agreed in principle to effectively collaborate in implementation of Bharat Net.

DEPARTMENT OF POSTS

• Post offices modernized with 2590 Post Offices having 14.55 crore accounts migrated to Core Banking Solution and 115 Post Office ATMs commissioned.
• 13264 Post Offices have been migrated to Core Postal Life Insurance.
• Procurement of biometric solar charged mobile devices with wireless connectivity to 1,30,000 rural Post Offices is presently underway.
• Sukanya Samridhi Yojana launched on January 22, 2015, has now more than 47 lakh accounts with a total investment of more than Rs 570 crores.
• Kisan Vikas Patra re-launched on November 18, 2014 has attracted investment of about Rs 2600 crore.
• Speed Post revenue grew to Rs 1470 crore in 2014-15 from Rs 1369 crore in the previous year. In CAG report laid in Parliament on May 8, 2015, on the basis of a detailed test check in 8 States, it has been highlighted that the quality of Speed Post service is far better than that of private couriers.
• Parcel revenue growth which had dipped to-2% in 2013-14, registered a robust growth of 37% in 2014-15.
• Cash on Delivery collections increased five times to reach Rs 500 crore in 2014-15 as compared to Rs 100 crore in the previous year.

DEPARTMENT OF ELECTRONICS & IT

Electronics Manufacturing:

• Modified Special Incentive Package (MSIPs): Till May 2015, 63 investment proposals worth Rs. 20,825 crore received. 40 proposals worth Rs. 9,565 crore approved. Till May 2014, only 8 proposals worth Rs. 1152 crore investment were approved.
• Electronic Manufacturing Clusters (EMCs): Till May 2015, 39 applications received, 21 approved in principle. Two EMCs at Bhopal and Jabalpur given final approval and foundation stone laid. Till May 2014, only 8 applications approved in principle.
• Electronic Development Fund approved by Cabinet on 10th December, 2014.

New pro-people initiatives:

• Digital India is a mission mode flagship programme, aimed at bridging the digital divide by providing a digital infrastructure for utility of citizens, digital delivery of services and digital empowerment.
• Jeevan Pramaan: 2.02 lakh Digital Life Certificates produced.
  · Digital Locker: Beta version launched. 1.24 lakh lockers opened.
• E-Hospital Registration: Started on May 8, 2015. More than 5421 appointments given.
• National Scholarship Portal for one stop solutions for scholarships for students.
• eBasta: Supports publishers to upload content, schools to collate and students to download on tablet, PC and Phone.

Digital Inclusion:

• Rural BPOs: 48,000 seats across different states for Rural BPOs approved.
• North East BPOs: 5000 seats for BPOs in North East approved.
• Digital Saksharta Abhiyan (DISA): scheme expanded to cover 52.50 lakh candidates, when compared to a target of only 10 lakh last year.

New Policy Initiatives:

• Policy on Open Source Software approved in April, 2015.
• Policy on Collaborative Application Development sent for notification on 11.05.2015.
• Email Policy approved on 18th February, 2015.
• e-Sign Framework has been initiated.
• Policy on use of IT resources approved on 18th February, 2015.
• Policy on Internet of Things has been drafted.

Promoting Indian Languages:

• Updated Indian Languages Toolkit available in all 22 languages now. Earlier it was available only for 10 languages.
• Internationalised Domain Names: Domain name .bharat launched in 8 languages of Devnagari script and in Gujarati, Bengali and Manipuri.

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Merger of loss making MTNL with BSNL: Rajya Sabha Q&A

Merger of loss making MTNL with BSNL: Rajya Sabha Q&A

 GOVERNMENT OF INDIA
MINISTRY OF  COMMUNICATION AND INFORMATION TECHNOLOGY
RAJYA SABHA

QUESTION NO  1108

ANSWERED ON  18.07.2014

Merger of loss making MTNL with BSNL

1108 SHRI ANIL DESAI

Will the Minister of COMMUNICATION AND INFORMATION TECHNOLOGY be pleased to satate:-
(a) whether it is a fact that both MTNL and BSNL are making losses;

(b) if so, the profit/loss status of these PSUs during the last three years;

(c) whether there is any proposal for merger of these two PSUs, if so, the details thereof;

(d) whether views of workers' unions of these PSUs are also taken into consideration to obviate any financial loss to them; and

(e) whether the merger envisages profits to these companies?

    ANSWER

THE MINISTER OF COMMUNICATIONS AND INFORMATION TECHNOLOGY & LAW AND JUSTICE (SHRI RAVI SHANKAR PRASAD)

(a) & (b) Yes, Sir, Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited have been making losses. Details of their profit/losses during the last three years are given below:
(In Rs. Crores)

Year            BSNL          MTNL
2011-12      (-) 8,851     (-) 4110
2012-13      (-) 7,884     (-) 5321
2013-14     (-) 7,085 *     7825**

* Unaudited and provisional
** MTNL has shown a profit of Rs. 7825 crore mainly due to write back of provisions on account of pensionary liabilities and spectrum amortization costs after decisions of Government taken for revival of MTNL.

(c) to (e) Government is in the process of revival and revitalization of Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) through various short term, medium term and long term measures.

The long-term measures, including merger of BSNL and MTNL, would attempt to position these PSUs to emerge as market leaders in the converged telecommunication market. For an in-depth study on the implications of merger of the two PSUs, three groups have been constituted to study issues of human resources integration, technology integration and corporate integration.

Views of unions on merger would be taken into consideration before a decision is taken in best public interest and that of two companies.

Source: Rajya Sabha

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