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Jul 13, 2012, 08.27 AM IST
CNBC-TV18's economy editor Siddharth Zarabi reveals that cash-strapped Mahanagar Telephone Nigam Ltd (MTNL) is looking for new sources to raise revenue
Cash-strapped Mahanagar Telephone Nigam Ltd (MTNL) is looking for new sources to raise revenue. The telecom PSU is considering selling its land bank, leasing out its network, voluntary retirement schemes for employees and even restructuring its loans, reveals CNBC-TV18's economy editor Siddharth Zarabi.
There have been several proposals to restructure and save MTNL because it's in a very bad shape. The sum total of the new proposals that are being discussed with the department of telecommunications (DoT) amount to additional revenues of around Rs 10,000 crore spread over the next two-to-three years.
MTNL expects a refund of the close to Rs 4,500 crore that it paid for access to broadband wireless spectrum. Even if that were not to transpire, it is looking selling its substantial land bank in Delhi and Mumbai.
Another key proposal is the voluntary retirement scheme. MTNL has 42,000 employees- a number that is three times what is really required to run the network. MTNL is proposing to the DoT that a VRS scheme be considered at a cost of around Rs 5,000 crore.
If the scheme is approved and MTNL receives the refund of its broadband wireless access spectrum dues, MTNL would be able explore other venues of mobilising additional revenue such as the leasing out of its entire CDMA network, which like so many other MTNL initiatives never took off.
However, MTNL has been on the decline for the last five-to-seven years. So, it remains to be seen if MTNL will be rescued and the employees made to feel secure about their jobs. Otherwise, it would be yet another national asset to go the Air India way.
Tags: Mahanagar Telephone Nigam Ltd, land bank, voluntary retirement schemes , restructuring its loans, department of telecommunications
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