Govt approves refund to BSNL & MTNL for BWA spectrum surrender.
The Group of Ministers, formed to look in to the revival of ailing telecom PSUs BSNL and MTNL , has allowed them to surrender BWA spectrum provided by the Govt for 4G services and refund apprx. 11000 cr paid by these PSUs. BSNL is expected to receive apprx. Rs 6724.5 cr while MTNL will benefit by Rs 4554 cr with this breather from the government. As both the PSUs are running in losses and finding it tough to survive against the mighty competition from the private players they had requested the government to take BWA spectrum back and refund the money paid by them in the year 2010. The GoM has also agreed to the demand from MTNL for taking care of pension payments of its employees which is currently borne by the company. This will cost apprx Rs 570 cr per year to the government. These proposals will now have to be approved by the Cabinet for further implementation. Now it needs to be seen whether such measures will help inject new lease of life in the long term to these PSUs which are reluctant to transform themselves with the fast paced technological advances and competition.
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