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/-

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

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)