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<ul><li>The central government is working on a ₹ 740 billion bailout proposal for loss making state-owned firms BSNL and MTNL. </li><li>The proposal includes an exit package for the Voluntary Retirement Scheme (VRS), an additional 5% compensation, along with providing for the <keyword id="122479" type="COMPANY" weightage="20" keywordseo="4G">4G</keyword> spectrum and capital expenditure. </li><li>BSNL at an estimated loss of ₹138.04 billion is country’s biggest state-owned loss maker, while MTNL stands at third after <keyword id="2573" type="COMPANY" weightage="20" keywordseo="Air-India">Air India</keyword>, at ₹ 33.98 billion loss. </li></ul>The central government is working on a ₹ 740 billion bailout plan for <keyword id="57998" type="COMPANY" weightage="20" keywordseo="Bharat-Sanchar-Nigam-Limited">Bharat Sanchar Nigam Limited</keyword> (BSNL) and Mahanagar Telecom Nigam Limited (MTNL), the two state owned telecom companies, which are continuing on their decade long downtrend, <a href="https://timesofindia.indiatimes.com/business/india-business/government-proposes-rs-74000-crore-bailout-for-bsnl-mtnl/articleshow/70048935.cms">Times of India reported</a>. The proposed bailout plan includes an exit package for thousands of employees, which includes an additional 5% compensation as an ex-gratia amount for the Voluntary Retirement Scheme (VRS). The plan also provides for growth with amounts earmarked for 4G spectrum, and capital expenditure. Top loss makers BSNL and MTNL are among the country's biggest loss making state owned entities. The top spot went to BSNL which has an estimated loss is at ₹ 138.04 billion. The third spot is occupied by MTNL after Air India, as its losses are at ₹33.98 billion. MTNL provides telecom services in Mumbai and Delhi, while BSNL provides it in rest of the country. The ministry of telecommunications’s proposal seeks revival of both the firms from other ministries. In response, the Ministry of Finance had asked the Department of Telecommunications to rework the proposals. Competitive Strength One of the plans is for the government to modernise these state-owned firms, so that they can compete with the aggressive players in the market like Reliance Jio, Airtel and Vodafone Idea. If it is passed, the government will allot the 4G spectrum which is valued at ₹ 200 billion and the rollout cost which is ₹ 130 billion will be paid by the PSUs, as per reports. BSNL and MTNL have lost market share in the mobile services business and their Average Revenue per user (<a href="https://www.thehindubusinessline.com/opinion/columns/slate/all-you-wanted-to-know-about-arpu/article9562345.ece">ARPU</a>) is a meagre ₹38 compared to ₹70 of private telecom entities. This trend has continued in the last one decade owing to poor management, high staff cost, government’s unwanted intervention and the very slow rate of technology upgradation. Shutting down costlier The department of telecom had argued in favour of the bailout plan proposal, saying that shutting down the PSUs will cost the government ₹1.2 trillion. As a plan for divestment in these companies might be delayed due to stressed telecom market, they might now look at joint ventures as an option. The government is also considering bringing the retirement age from 60 to 58 to bring down the costs of companies and reduce their losses. SEE ALSO: <a href="https://www.businessinsider.in/the-fate-of-180000-bsnl-unpaid-employees-hangs-in-balance-as-fears-of-a-shutdown-loom-large/articleshow/69954923.cms">The fate of 180,000 BSNL unpaid employees hangs in balance as fears of a shutdown loom large</a>

BSNL and MTNL may shed flab and get 4G spectrum as a part of the proposed ₹740 billion bailout plan

<ul><li>Bharat Sanchar Nigam (BSNL) whose debt of ₹130 billion has piled up.</li><li>Fear has gripped 1.8 lakh employees of the company as their June salaries are yet to be paid.</li><li>The company has written to the telecom ministry, seeking help from government.</li></ul> Nothing short of a bailout from the government can help the state-owned telecom operator Bharat Sanchar Nigam (BSNL). The company has a debt of ₹130 billion piled up leaving no funds for salaries. Just a few days back, the company which owns licence to offer telecom services across the country, except Delhi and Mumbai, asked a handout from the government to pay ₹8.5 billion in salaries. For the last one month, fear has gripped 1.8 lakh employees of the company as their June salaries are still pending. Their benefits have been pending for months now. In fact, contractual workers of the company are in a much tougher position as their salaries have been pending for the last seven months. Such workers in Amritsar have already staged a protest demanding salaries. Added to that, a bunch of them lost their jobs in early June, after the company decided to retrench 30% of its contractual staff to cut down ‘avoidable expenditure’,”<a href="https://www.newsclick.in/BSNL-asks-circles-retrench-30%25-contractual-workers"> says a report</a>. In the meanwhile, the company has written to the telecom ministry early last week elucidating its troubles. "The gap between monthly revenues and bare expenses to continue operations as a going concern has reached a level where continuing with the BSNL operations would be nearly impossible without immediate infusion of adequate equity," Puran Chandra, senior general manager at BSNL<a href="https://www.businesstoday.in/sectors/jobs/bsnl-no-funds-june-salaries-to-pay-employees-bharat-sanchar-nigam-limited-modi-government/story/358576.html"> reportedly wrote in the letter.</a> BSNL has also sought a fund of ₹25 billion to keep itself afloat. The state-owned player’s problems started after private telecom operators started eating into the market. In spite of spectrum, assets and legacy, the player, which was amongst the top players in 2005, dropped spots rapidly by the end of 2010. Added to that, the government also delayed its plans to place a tender to upgrade its networks for years, leaving the company in an uncompetitive space. In the past, the government had considered many ways to salvage BSNL, and one of them being a merger with yet another state-owned company MTNL. Yet, none of them materialised. For years, BSNL has also been requesting the government to allow them to monetise its vast real estate assets across the country. Department of Telecommunications however <a href="https://www.financialexpress.com/industry/monetising-assets-bsnl-wants-to-sell-lands-which-it-does-not-own/1031849/">shot down the proposal </a>saying that it is the government which owns these assets and not BSNL, hence it is impossible to sell them.

The fate of 180,000 BSNL unpaid employees hangs in balance as fears of a shutdown loom large

<ul><li>As many as 15,000 employees enrolled in the scheme on the very first day. </li><li>Eligible employees are keen on enrolling for the scheme as rumours that the company capped the VRS packages for 80,000 employees — is doing the rounds. </li><li>The VRS scheme will be available till December 3, 2019 till 5:30 pm. </li><li>After implementing the bailout package for BSNL and MTNL, the union government plans to trim the retirement age of employees to 58 years.</li></ul>Employees at BSNL who have been receiving their salaries two weeks late for the last few months are rushing to apply for the Voluntary Retirement Scheme (VRS) package offered by the company. As many as 15,000 employees enrolled in the scheme on the very first day on November 6, according to sources. Two days back, the debt-ridden telco announced VRS for employees aged 50 and above. Eligible employees are rushing in to apply for the scheme as rumours that the company capped this offer for 80,000 employees only — is doing the rounds. While the telecom player has around 176,000 employees, as many as 106,000 fall under the eligibility age. The telco was hoping that 80% of the employees would opt for VRS. “The number of persons in the organisation are far higher than the competitors. We are looking forward to reduce 70,000 to 80,000 employees, and make it attractive for the employees, so that they can see value in the VRS," Pravin Kumar Purwar, Chairman of BSNL <a href="https://www.businessinsider.in/bsnl-which-is-yet-to-pay-august-salaries-wants-to-give-an-attractive-retirement-package-to-80000-employees/articleshow/70988909.cms" data-type="tilCustomLink">said </a> a few months back. Even after the scheme is implemented, the telco will have 100,000 employees on its rolls. Reducing headcount is important for both BSNL and MTNL who are being dragged down by debt. As the government is implementing the rescue package, both these state-owned companies which will be merged — want to modernise processes and get ready to compete in the market. The VRS scheme will be available till December 3, 2019 till 5:30 pm. The government will infuse a total of ₹29,900 crore for VRS settlements and retirement liabilities of BSNL and MTNL. MTNL too announced the same scheme on November 3. After implementing the bailout scheme for BSNL and MTNL, the union government plans to trim the retirement age of the employees to 58 years. The current age for retirement is 60 years. Last month, the government decided to <a href="https://www.businessinsider.in/policy/news/bsnl-and-mtnl-will-be-merged-and-employees-will-be-offered-voluntary-retirement-as-part-of-revival/articleshow/71721917.cms">merge</a> BSNL and MTNL. While the merger will take some time to be implemented, MTNL will be considered as a subsidiary of BSNL till then. In 2019, BSNL’s revenues dipped and the accumulated losses stood at ₹14,000 crore while MTNL posted a loss of ₹3,388 crore. See also: <a href="https://www.businessinsider.in/business/news/bsnl-and-mtnl-vrs-package-announced-121000-employees-are-eligible/articleshow/71920815.cms">BSNL’s VRS package is out and valid till December 3 — and over half of all employees are eligible</a> <a href="https://www.businessinsider.in/careers/news/100000-people-working-with-bsnl-vendors-are-likely-to-go-empty-handed-even-as-the-government-compensates-the-employees/articleshow/71916430.cms">100,000 people working with BSNL vendors are likely to go empty handed</a> <a href="https://www.businessinsider.in/business/startups/news/bsnl-and-mtnls-74000-cr-plan-involves-purchasing-4g-spectrum-fees-and-vrs/articleshow/71705375.cms">BSNL and MTNL's ₹74,000 cr plan involves purchasing 4G spectrum fees and VRS</a>

Over 15,000 BSNL employees rush to opt for VRS package on day one

<ul><li>All the permanent employees of 50 years and above as on January 31, 2020 can opt for VRS. </li><li>BSNL and MTNL together have 200,000 employees. Of this, 121,000 can apply for the scheme. </li><li>The union government will also trim the retirement age of employees to 58 years. The present age for retirement at the state-run telcos is 60 years.</li></ul>After months of anticipation and protests, state-owned BSNL has announced its Voluntary Retirement Scheme (VRS) package for its employees. This package will be available for employees aged 50 and above, and will be paid in tranches. Eligible employees are rushing to apply for it as rumours of the company reducing retirement age is also doing the rounds. After implementing the bailout package for BSNL and MTNL, the union government plans to trim the retirement age of employees to 58 years. The current age for retirement at the state-run telcos is 60 years. Almost half of them are expected to retire in the next five to six years, Business Standard <a href="https://www.business-standard.com/article/companies/sale-of-rs-37-500-crore-worth-of-bsnl-mtnl-assets-hits-ownership-hurdle-119110401305_1.html">reports</a>. MTNL, on the other hand, already announced the scheme which is the same as that of BSNL. The VRS scheme will be available till December 3, 2019 by 5:30 pm. “All the permanent employees of 50 years and above as on January 31, 2020" can opt for it,” the company said. As per the scheme, the company will give 125% of the salary of an employee’s remaining service. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Age bracket </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Compensation under VRS </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">50-53.5 years </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">80% -100% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">53.5 years </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">125% of the salary </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Upto 55 years </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">The pension will be commuted in the sixth year 2024-25 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over 55 years </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">The pension will be extended as the employee turns 60 </td></tr></tbody></table> Both the debt-ridden telecom players have nearly 200,000 employees. Of this, 121,000 are eligible to apply for the scheme. However, even after the scheme is implemented, as many as 100,000 employees will remain on its rolls of both the telcos. After this move the telcos plan to outsource processes to run operations. The move is expected to boost the revenue of the companies. Employees costs account to three fourth of BSNL’s revenue. For MTNL, employee costs are at 87% of its revenue. To revive these debt-laden companies, the government has planned to <a href="https://www.businessinsider.in/policy/news/bsnl-and-mtnl-will-be-merged-and-employees-will-be-offered-voluntary-retirement-as-part-of-revival/articleshow/71721917.cms">merge BSNL and MTNL</a>. Until the merger is implemented, MTNL will be considered a subsidiary of BSNL. The government will infuse a total of ₹29,900 crore for VRS settlements and retirement liabilities of these state-owned telcos. The government will also allocate 4G spectrum to the merged entity as a part of the revival package. This will help the company compete with top three telecom players who offer high-speed data services. BSNL’s accumulated losses stood at ₹14,000 crore while MTNL posted a loss of ₹3,388 crore in 2019 fiscal. See also: <a href="https://www.businessinsider.in/careers/news/100000-people-working-with-bsnl-vendors-are-likely-to-go-empty-handed-even-as-the-government-compensates-the-employees/articleshow/71916430.cms">100,000 people working with BSNL vendors are likely to go empty handed</a> <a href="https://www.businessinsider.in/bsnl-employees-support-its-management-says-its-expanding-customer-base/articleshow/69967595.cms">BSNL employees support its management, says its expanding customer base</a> <a href="https://www.businessinsider.in/bsnl-and-mtnl-may-shed-flab-and-get-4g-spectrum-as-a-part-of-its-proposed-740-billion-bailout-package/articleshow/70054787.cms">BSNL and MTNL may shed flab and get 4G spectrum as a part of the proposed ₹740 billion bailout plan</a>

BSNL’s VRS package is out and valid till December 3 — and over half of all employees are eligible

<ul><li>State-owned telecom operator <keyword id="57998" type="COMPANY" weightage="20" keywordseo="Bharat-Sanchar-Nigam-Limited">Bharat Sanchar Nigam Limited</keyword> (BSNL) is considering to reduce 80,000 employees with a Voluntary Retirement Scheme (VRS) to cut down on its operational costs. </li><li>BSNL revenues dipped from ₹32,000 crores to ₹ 18,000 crores, according to its Employee Union. </li><li>It is also looking to reduce its energy consumption by 15% to keep itself afloat. </li><li>The company has not paid the August salaries to its employees, which has led to massive protests by the contractual workers.</li></ul>State-owned telecom operator Bharat Sanchar Nigam (BSNL) is looking to cut its headcount by 80,000 employees by offering an attractive Voluntary Retirement Scheme (VRS). The debt-ridden telecom company which is looking to reduce its operational costs, is awaiting government response to its scheme. Once approved, the operator will cut the headcount to half of its existing workforce in India, Pravin Kumar Purwar, Chairman of BSNL <a href="https://economictimes.indiatimes.com/industry/telecom/telecom-news/bsnl-eyes-to-cut-50-of-employees-on-voluntary-basis/articleshow/70972957.cms">told</a> ET. With this, the telco is looking to outsource employees on a contractual basis to run operations. However, even after retiring the said number, it will have as many as 100,000 employees on payroll. The move will boost revenue of the company as employees cost three fourths of its total revenue. According to the <a href="https://www.thenewsminute.com/article/bsnl-delays-august-salary-employee-unions-stage-protest-across-country-108293">Employee Union</a>, “BSNL revenues dipped from ₹32,000 crore to ₹ 18,000 crore. The government has not taken any meaningful action to curb the predatory pricing.” “The number of persons in the organisation are far higher than the competitors. One of the proposals under discussion is the VRS. We are looking forward to reduce 70,000 to 80,000 employees, and make it attractive for the employees, so that they can see value in the VRS," Purwar noted. It is also tightening costs by reducing its energy consumption by 15%. It is not just BSNL but all telcos are suffering from reduced income from data services, thanks to Jio’s prices. BSNL is looking to loop in 4G services to keep up with the financial costs. Meanwhile, the telco is also looking to address the payment dues as it is yet to pay its August salaries, The News Minute <a href="https://www.thenewsminute.com/article/bsnl-delays-august-salary-employee-unions-stage-protest-across-country-108293">reported</a>. This is the third time that the company has delayed salaries. In fact, over 6,500 BSNL’s employees in Telangana protested due to the delay in salaries. See also: <a href="https://www.businessinsider.in/the-fate-of-180000-bsnl-unpaid-employees-hangs-in-balance-as-fears-of-a-shutdown-loom-large/articleshow/69954923.cms">The fate of 180,000 BSNL unpaid employees hangs in balance as fears of a shutdown loom large</a> <a href="https://www.businessinsider.in/bsnl-employees-support-its-management-says-its-expanding-customer-base/articleshow/69967595.cms">BSNL employees support its management, says its expanding customer base</a> <a href="https://www.businessinsider.in/bsnl-and-mtnl-may-shed-flab-and-get-4g-spectrum-as-a-part-of-its-proposed-740-billion-bailout-package/articleshow/70054787.cms">BSNL and MTNL may shed flab and get 4G spectrum as a part of the proposed ₹740 billion bailout plan</a>

BSNL which is yet to pay August salaries wants to give an attractive retirement package to 80,000 employees

<ul><li>Rating agency <keyword id="6423565" type="ORGANIZATION" weightage="20" keywordseo="moody">Moody</keyword> downgraded its outlook from stable to negative. </li><li>The agency said that there is an increased probability of a more entrenched slowdown. </li><li>A deeper liquidity squeeze that threatened the solvency of some NBFIs could give rise to some fiscal costs, said Moody’s. </li></ul> A day after the short-lived euphoria caused by the Indian government’s ₹25,000 crore bailout package – it is hit by yet another downgrade. Moody’s rating agency changed its outlook on India to ‘negative’ from ‘stable’. Pun unintended, this must have turned the Prime Minister Narendra Modi moodier than he was. Yesterday, at an industrial summit in Himachal Pradesh, he was complaining that the real estate bailout package did not get the media coverage it deserved. It won’t help that Moody’s believes that the many measures being taken by the government including reducing corporate tax rate, bailout to shadow banks, merging large Indian banks --- won’t help the slowdown which is ‘deeply entrenched’. “While government measures to support the economy should help to reduce the depth and duration of India's growth slowdown, prolonged financial stress among rural households, weak job creation, and, more recently, a credit crunch among non-bank financial institutions (NBFIs), have increased the probability of a more entrenched slowdown,” the agency said in its report. The finance ministry released a statement saying that IMF and other organizations have a positive outlook on the country. “The government has undertaken a series of financial sector and other reforms to strengthen the economy as a whole. Government of India has also taken policy decisions in response to the global slowdown. The measures would lead to a positive outlook on India and would attract capital flows and stimulate investment,” the statement said. But these many measures are what could alter India’s finances. The many bailout packages that India is rolling out to BSNL and MTNL, shadow banks and many others which are in deep crisis --- could also land the country in debt. Added to that, due to weak sentiment, the government’s plans to sell state-owned companies and make money --- is also not moving at the expected pace. “With the recently announced corporate tax cuts and lower nominal GDP growth, Moody's now expects a central government deficit of 3.7% of GDP in the fiscal year ending in March 2020. State deficits will likely be at or very close to the 3% of GDP cap. A deeper liquidity squeeze that threatened the solvency of some NBFIs could give rise to some fiscal costs from government support to some institutions,” said Moody’s report. At this juncture, the ability of the country to afford debt will also come down. It means India is slowly ending up where most of its companies are --- deep in debt, increased costs, weak credit ratings and unsold assets.

Moody's says India's tax cuts, realty rescue, and bailouts are not enough to beat the slowdown

New Delhi, Nov 25 () Following are the top business stories at 1845 hours:

DCM44 BIZ-LD TELECOM-COS
CoS on telecom bailout package disbanded
New Delhi: With the Cabinet allowing telecom operators to defer payments due for airwaves bought via auction until the end of March 2022, a committee of secretaries constituted to look at relief package for the debt-laden and loss-making sector has been wound-up, a top source said.
 
DCM47 BIZ-BSNL-VRS
Over 92,000 employees of BSNL, MTNL opt for VRS scheme
New Delhi: Over 92,000 employees of state-run BSNL and MTNL have so far opted for the recently announced VRS scheme, according to a government source.
 
DEL65 BIZ-LD STOCKS
Market on a roll: Sensex captures new heights; Nifty tops 12,050
Mumbai: Equity benchmark Sensex surged nearly 530 points to scale a new closing peak of 40,889.23 on Monday, buoyed by renewed optimism over US-China trade deal and government's divestment measures to curb fiscal deficit. 
 
DCM40 BIZ-PAYTM-LD FUNDS
Paytm raises USD 1 bn in funding round led by T Rowe Price
New Delhi: Digital payments company Paytm on Monday said it has raised USD 1 billion (over Rs 7,000 crore) in funding from US-based asset management firm T Rowe Price and existing investors including SoftBank and Alibaba to fund expansion plans. 

DEL78 BIZ-LD RUPEE
Rupee ends marginally lower against US dollar
Mumbai: The rupee on Monday settled 3 paise lower at 71.74 per US dollar in line with weaker key global currencies against the greenback, despite a strong rally in financial markets on renewed hopes of trade truce between Washington and Beijing.
 
DCM38 BIZ-STOCKS-WEALTH
Investors become richer by Rs 1.81 lakh cr as stocks zoom
New Delhi: Investor wealth rose Rs 1.81 lakh crore on Monday driven by a strong rally in the broader market where the BSE benchmark surged 530 points to hit a fresh closing high of 40,889.23.
 
DCM39 LS-IFSC-UNIFIED REGULATOR
Govt moves Bill in Lok Sabha to appoint unified regulator for IFSCs
New Delhi: A Bill to set up unified financial regulator in the international financial services centres, currently one functional at GIFT in Gujarat, was introduced in the Lok Sabha on Monday.
 
DCM28 BIZ-STOCKS-LD-RCOM
RCom shares rally 6 pc to hit upper circuit on asset sale buzz
New Delhi: Shares of Reliance Communications hit their upper circuit on Monday, rising over 6 per cent, amid reports that Bharti Airtel, Reliance Industries and three others may bid for the assets of debt-ridden company. 
 
 

 
 
 
 
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Business highlights

<ul><li>The government set a target to raise ₹1,05,000 crore by selling stakes in public sector companies </li><li>Will look at consolidation of non-finance PSUs, says FM </li><li>Will revive plans to sell stake in <keyword id="2573" type="COMPANY" weightage="20" keywordseo="Air-India">Air India</keyword>. </li></ul>The government set a target to raise ₹1,05,000 crore by selling stakes in public sector companies, the Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> said. The government will also revive the plan to divest stake in loss-making Air India. “We will look at bringing private participation in more central public sector enterprises. We will also look at consolidation in public sector, in the non-finance sectors as well,” she said. This move has been predicted by many experts who have been pushing for strategic asset monetisation which has been delayed in the last term of <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword>. This time, with the current state of fiscal deficit at 5.8% in 2018-19, there are few excuses to delay it. Many new and innovative financial instruments have been launched in the last five years, and there have been successful in making money from brownfield assets which are basically established or 'built' assets. "India has had a reasonable success in brownfield asset monetisation and several InvITs (investment trusts)t and one REIT transaction have already been completed. Additionally, NHAI carried out one toll project transaction as well. The cumulative resources garnered through these instruments and model exceed 24,000 crore," she said. Divestment is the best way for the government to make money, and also offload its stake in companies. As CEO of NITI Aayog Amitabh <a href="https://www.moneycontrol.com/news/business/economy/asset-recycling-divestment-immediate-measures-that-govt-must-consider-amitabh-kant-4168831.html">Kant says</a>, that the government is sitting on a lot of assets which can use new owners and bring in efficiencies into the system. This will solve the problem of government having to bail out large troubled companies. On the top of the list are BSNL with highest expected losses of ₹ 138.04 billion for the year. Air India and MTNL too occupy second and third spots amongst most expected losses. The debt of these companies has been making it tough for them to function along with many policies that stifle their growth. Most of them including BSNL and Air India scramble for money to pay salaries every month. The country is also expected to divest stakes in at least three brownfield assets, with no liabilities. However, the proposal to divest stakes could be expedited by the government. SEE ALSO <a href="https://www.businessinsider.in/bsnl-and-mtnl-may-shed-flab-and-get-4g-spectrum-as-a-part-of-its-proposed-740-billion-bailout-package/articleshow/70054787.cms">BSNL and MTNL may shed flab and get 4G spectrum as a part of the proposed ₹740 billion bailout plan</a>

Union Budget 2019: Government sets ₹1,05,000 crore disinvestment target, revive Air India sale plan

<ul><li>Millions of government employees across multiple state-owned companies are either anxious, ready to protest and have even taken to roads — to make sure they get their due. </li><li>Thousands of employees have taken to roads, protesting over delays. </li><li>As many as 25,000 home guards in Uttar Pradesh police department lost their jobs overnight. </li><li><keyword id="86569" type="COMPANY" weightage="20" keywordseo="Hindustan-Aeronautics-Limited">Hindustan Aeronautics Limited</keyword> (HAL) also dismissed the employees' demand for higher wage revision saying that "workmen cannot be at par with officers on salaries and perks.”</li></ul>During bad times, there is nothing like a secure job — even when you are employed with the government. As many as two millions government employees across multiple state-owned companies are either anxious, ready to protest and have even taken to roads — to make sure they get their due. This is extra pain on the Indian economy as millions of blue collar jobs have already been lost in the last few months — across auto, textile and diamond polishing sectors. Delayed salaries and job cuts The worst-affected of all government employees are the 176,000 at telecom operator BSNL. In the last few months, the debt-ridden company has been paying salaries two weeks late. While the government is still mulling a bailout package, the employees are left in doldrums. Another 20,000 employees of <keyword id="2573" type="COMPANY" weightage="20" keywordseo="Air-India">Air India</keyword> are just as angry and anxious about their future. And, the government has already decided their fate — which is a sell-off. The pilots union has already told the government that they will go for mass resignations if the national carrier lands in the hands of a private entity — which is sure to downsize. Wage revisions are too little, too late As many wonder about the state of their employment, others are annoyed with delayed wage revisions. As many as 20,000 workers and a few officers of Bangalore-headquartered Hindustan Aeronautics (HAL) are protesting against low salary hikes. The company dismissed their demand for higher wage revision saying, "workmen cannot be at par with officers on salaries and perks.” “We hope this realization will percolate to the employees sooner to make them call off their indefinite strike," HAL Chief Financial Officer C B Ananthakrishnan told IANS. Employees of public sector banks — which employs nearly 800,000 people — also seem to be unhappy with the<a href="https://www.businessinsider.in/careers/news/salary-hikes-at-government-banks-ahead-of-diwali/articleshow/71473853.cms"> wage revision</a> as the bankers association decided to offer one month extra salary without reaching a consensus with the bank unions. They are expected to go on a strike on October 22. Interestingly, the wage revision was due since 2017 in both cases. State government employees lose jobs and hope The employees of state governments have their own set of problems. Over 49,000 <keyword id="2981720" type="COMPANY" weightage="20" keywordseo="Telangana-State-Road-Transport-Corporation">Telangana State Road Transport Corporation</keyword> (TSRTC) employees have been on a 12-day long protest, demanding salaries for September. But, not just delayed payments, job loss is hurting the most vulnerable of employees. As many as 25,000 home guards in Uttar Pradesh police department <a href="https://www.businesstoday.in/current/economy-politics/yogi-adityanath-govt-terminates-25000-up-police-home-guards-on-diwali-uttar-pradesh/story/384879.html">lost jobs</a> as the government could not afford to pay the salaries at par. And, the administration called it a ‘resource constraint.’ Abiding by the Supreme Court verdict, the department was liable to pay the increased salaries at ₹672 per day to the home guards — who are paid ₹500 as of now. But, it slashed the workforce to 65,000, in order to compensate for the hike. See also: <a href="https://www.businessinsider.in/bsnl-which-is-yet-to-pay-august-salaries-wants-to-give-an-attractive-retirement-package-to-80000-employees/articleshow/70988909.cms">BSNL which is yet to pay August salaries wants to give an attractive retirement package to 80,000 employees</a> <a href="https://www.businessinsider.in/business/article/air-india-could-be-grounded-for-lack-of-fuel/articleshow/71593551.cms">Weeks ahead of divestment, Air India faces multiple threats of being grounded</a> <a href="https://www.businessinsider.in/textile-workers-diamond-polishers-and-others-face-job-losses/articleshow/70977544.cms">The untold crisis to befall India’s artists, artisans and weavers</a>

Over 2 million government employees are angry, anxious and dejected over salaries, hikes and job security

<ul><li>Jio shot off a letter to COAI breaking the myth of doom and gloom in the sector.</li><li>Jio blamed Airtel and Vodafone-Idea of not sufficiently investing in network expansion.</li><li>It accused COAI of being a mouthpiece of the two operators and not an industry body.</li></ul><keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>’s telecom battle just escalated from tariff war a war of words. After the Supreme Court verdict which would lead to top players Bharti Airtel and Vodafone Idea shelling out as much as ₹92,000 crore – an industry association COAI came to their support. The Cellular Operators Association of India warned that the telecom sector would turn into a monopoly. And Jio is not impressed. It shot off a letter to COAI breaking the myth of doom and gloom in the sector. It said not that not only can they pay up the dues, but also blamed them from not sufficiently investing to keep up with the sector. “These operators anyways were not investing sufficiently in the sector and have been shedding crocodile tears by claiming financial stress for a long time now and have not shown any inclination to modernize the networks,” said Jio in a letter to the COAI, making it clear to the telecom department that it does not agree with COAI views on the industry. 
 
 
 
 
 
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 Jio also foresaw that in an event when the players fail to pay up the aggregate gross revenue (AGR) dues as per the new calculation – which includes non-telecom revenue – will not result in a monopoly. That’s because Jio is expecting two state-owned players—BSNL and MTNL which are unable to pay salaries to their employees—too keep the competition high in the sector. The fact that the industry body sought a bailout package from the government over these dues, irked Jio immensely. “The financial difficulties of these operators are an effect of their own commercial decisions (tariff cuts) and government should not be obliged to bail them out for their own commercial failure and financial mismanagement,” Jio said. As Vodafone and Airtel continue to saddle debt after Jio launched in 2016, Jio last week announced that it will turn debt free as it has been spun off into a different entity from Reliance Industries which includes energy, retail, media and other businesses. SEE ALSO <a href="https://www.businessinsider.in/business/news/reliance-jio-airtel-and-vodafone-idea-may-raise-tariff-soon/articleshow/71757089.cms">Whether you use Jio, Airtel, Vodafone-Idea, get ready to pay more for mobile services— sooner than later</a>

Jio, Airtel, and Vodafone-Idea are down to smack talk as the great Indian telecom race enters knockout round

New Delhi, Nov 18 () The government should grant telecom companies a three-year moratorium followed by an extended timeline for payment of all statutory dues at easier interest rates, as the telecom sector is reeling under massive losses after the Supreme Court ruling on AGR liabilities, COAI said on Monday.
 Cellular Operators Association of India (COAI) Director General Rajan Mathews told that operators need "oxygen" and urged the government to take a call on debt restructuring of all the dues that telecom operators owe to the government.
 Mathews said most 4G licences have 11-year validity left, and that the government could pack in another 10 years, thus allowing operators to pay back all the outstanding dues spread over the entire licence period.
 "It is also time to redefine AGR (adjusted gross revenue) prospectively," Mathews said.
 The telecom industry has been haemorrhaging, with combined losses of listed mobile network firms surpassing Rs 1 lakh crore in the September-ended quarter.
 Last week, India's two leading telecom operators Vodafone Idea and Bharti Airtel reported a combined loss of Rs 74,000 crore for the second quarter ended September 2019, mainly on account of statutory dues arising from the recent Supreme Court order on AGR.
 The apex court upheld the government's position of including revenue from non-telecommunication businesses in calculating the annual AGR of telecom companies, a share of which has to be paid as licence and spectrum fee to the exchequer. The ruling over statutory liabilities has triggered a rush for provisioning by telecom companies.
 While Vodafone Idea posted a loss of Rs 50,921 crore, the highest-ever quarterly loss by any company in India, Airtel reported a loss of Rs 23,045 crore.
 On Friday, Reliance Communication posted a consolidated loss of Rs 30,142 crore for the July-September 2019 period due to provisioning for liabilities after the Supreme Court ruling on statutory dues -- marking second-highest loss posted by any Indian company till date.
 Airtel, Vodafone Idea and other telecom operators have to pay the government a whopping Rs 1.4 lakh crore following the Supreme Court order that has sent shock waves through an industry already grappling with past losses and billions of dollars in debt.
 According to latest estimates by the telecom department, Bharti Airtel faces a liability of around Rs 62,187 crore (including share of Tata Group of companies and Telenor India), while Vodafone Idea may have to pay about Rs 54,184 crore. The remaining liability is with state-owned BSNL and MTNL and some of the shut or bankrupt telecom companies.
 Stung by colossal losses, Vodafone Idea has said its ability to continue as a going concern is dependent on obtaining relief from the government and positive outcome of the proposed legal remedy. The company is also in the process of filing a review petition against the Supreme Court order.
 The Department of Telecommunications (DoT) had shot off notices to telecom operators to pay their revenue share dues within three months as directed by the Supreme Court. The DoT has given option to telecom operators to clear all the dues on self-assessment basis.
 Last month, the government also constituted a committee of secretaries to explore a financial bailout package for the telecom sector. MBI HRS

Grant 3-year moratorium, extended timelines for payment of all dues: COAI to govt

New Delhi, Nov 17 () The Indian mobile industry will consolidate further if the government does not offer a material relief on AGR liabilities, regulatory levies and potentially a floor on pricing, according to Kotak Institutional Equities.
 A 'no material relief' scenario would be an industry-structure-altering one, it added.
 "We believe that the Indian wireless industry would consolidate further in case the government does not offer a material relief on...the AGR (adjusted gross revenue) case liabilities...other aspects like recurring regulatory levies, deferred spectrum payments and ...potentially a floor on pricing," Kotak said in a recent report.
 Even as the massive AGR-case-related payout is a meaty gross negative for Bharti Airtel, the potential gross positive from industry consolidation will likely result in a net positive outcome, it said adding that Bharti could be a net beneficiary.
 Credit Suisse noted that Vodafone Idea faced "another operationally weak quarter" and that the government relief measures are "key to sustain".
 The telecom industry has been hemorrhaging, with combined losses of listed mobile firms surpassing Rs 1 lakh crore in the just-ended quarter.
 Last week, India's two leading telecom operators Vodafone Idea and Bharti Airtel reported a combined loss of Rs 74,000 crore for the second quarter ended September 2019, mainly on account of statutory dues arising from the recent Supreme Court order on AGR.
 The apex court has upheld the government's position on including revenue from non-telecommunication businesses in calculating the annual AGR of telecom companies, a share of which has to be paid as licence and spectrum fee to the exchequer. The ruling over statutory liabilities has triggered a rush for provisioning by telecom companies.
 While Vodafone Idea posted a loss of Rs 50,921 crore -- the highest-ever quarterly loss by any corporate in India -- Airtel reported a loss of Rs 23,045 crore.
 On Friday, Reliance Communication posted a consolidated loss of Rs 30,142 crore for July-September 2019 due to provisioning for liabilities after the Supreme Court ruling on statutory dues -- marking the second-highest loss posted by any Indian corporate to date.
 Airtel, Vodafone Idea and other telecom operators have to pay the government a whopping Rs 1.4 lakh crore following the Supreme Court order that has sent shock waves through an industry already grappling with past losses and billions of dollars in debt.
 According to the latest estimates by the telecom department, Bharti Airtel faces a liability of around Rs 62,187 crore (including share of Tata Group of companies and Telenor India), while Vodafone Idea may have to pay about Rs 54,184 crore. The remaining liability is with state-owned BSNL, MTNL and some of the shut/bankrupt telecom companies.
 Stung by colossal losses, Vodafone Idea has said its ability to continue as a going concern is dependent on obtaining relief from the government and positive outcome of the proposed legal remedy.
 The company is also in the process of filing a review petition against the Supreme Court order.
 The Department of Telecommunications had shot off notices to telecom operators to pay their revenue share dues within three months as directed by the Supreme Court. The DoT has given option to telecom operators to clear all the dues on self-assessment basis.
 Last month, the government also constituted a committee of secretaries to explore a financial bailout package for the telecom sector. MBI HRS

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