GoM approves BSNL/MTNL bailout measures

16 Sep 2013

India’s Group of Ministers (GoM), headed by finance minister P Chidambaram, has approved plans to refund INR110 billion (USD1.734 billion) to state-backed telcos Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) for the return of broadband wireless access spectrum (BWA), the Economic Times reports. The GoM also made a further decision to relieve the debt-laden MTNL, agreeing that the government would contribute INR4 billion of the telco’s annual pension liability of INR5.7 billion. Telecom Minister Kapil Sibal added that another ‘small issue’ had been resolved, but did not disclose details. With the approval of the GoM, the plans must now be green-lit by the cabinet before implementation.