“We hope to get somewhere around Rs. 20,000 crore from the monetisation of 49 assets, and clearance for a refund of Rs 4,130 crore which is under active consideration,” MTNL chairman PK Purwar<\/a> told ETT, adding that the fund would help in cash flow and investments in networks.
State-owned telecom carrier had requested the government to refund the interest cost on the amount it paid in 2010 for acquiring BWA spectrum to offer fourth generation (4G) data services.
MTNL that operates in Delhi and Mumbai<\/a> metropolitans is currently under a debt of more than Rs. 19,000 crore and has posted a loss of Rs. 832.26 crore in the quarter ended December 2018.
Purwar said that the operator has already submitted a comprehensive revival plan that has also included voluntary retirement scheme (VRS) for those attaining 50 years of age, and the matter is likely to come up at the upcoming Digital Communications Commission discussions.
The service provider’s VRS plan is expected to cost around Rs. 2,100 crore. It has close to 23,000 employee base.
“In the existing cut-throat mobile market, we have also submitted our proposal to the government to launch 4G services,” the top official said, hoping that the regulator would soon come out with its recommendations.
Meanwhile, an official source at the Telecom Regulatory Authority of India (Trai) said that it has not yet received any reference from the department of telecom<\/a> (DoT<\/a>) seeking its views on the allocation of spectrum to both— MTNL and Bharat Sanchar Nigam Limited (BSNL<\/a>).
MTNL wants to use airwaves in the 1800 Mhz band in Delhi, given its propagation characteristics, and the 2100 Mhz frequency in Mumbai for the much-awaited 4G service rollout.
In addition to telco’s revival plan, pending approval from the government, it has also devised a strategy that included renting administrative buildings and exchange premises to earn additional income.
It may earn as much as Rs. 300 crore through rental in FY 2019-20.
The state-driven telco is also eying reduction in power consumption bills and has already received approval from the Maharashtra Electricity Regulatory Commission (MERC) to allow it energy on an industrial tariff basis from the current commercial pricing.
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