SME Times is powered by   
Search News
Just in:   • Jet pilot shoots tough questions at management  • 40 pc transactions with MSMEs on GeM in FY 2018-19  • US dollar falls amid rising British pound  • IndiGo to gain most from Jet Airways collapse  • Airbnb's growth driving down lodging prices: Study 
Last updated: 12 Mar, 2019  

MTNL.9.Thmb.jpg Minister meets FM over MTNL wage bill

MTNL.9.jpg
   Top Stories
» 40 pc transactions with MSMEs on GeM in FY 2018-19
» Consumer confidence up sharply in April: Ipsos report
» Efforts needed to attract more voters: Minister
» Banking sector needs systematic reforms: Naidu
» Technology opening up new vistas for women entrepreneurs: Naidu
SME Times News Bureau | 12 Mar, 2019
Telecom Minister Manoj Sinha on Tuesday met Finance Minister Arun Jaitley and is understood to have sought funds amounting to over Rs 1,000 crore for salary payments to cash-strapped MTNL till June this year.

Sinha was accompanied by telecom secretary Aruna Sundararajan and MTNL chairman and MD Praveen Kumar Purwar to the meeting.

Sinha, Sundararajan and Purwar declined to comment on the purpose of their meeting. However, MTNL sources said the meeting took up the sector's concerns.

MTNL share price is down 2.51 per cent at Rs 13.60. The PSU is under intense pressure over high comeptition, lack of funds and revenues. Its networth has turned negative. MTNL operates in Delhi and Mumbai.

Sources said MTNL is not in a position to pay salaries any further. The Department of Telecom has been paying the salaries amounting to around Rs 200 crore a month since November last year.

The funds sought from the Finance Ministry would cover MTNL's wage bill till June or completion of polls. MTNL, which operates only in Delhi and Mumbai and expects that these measures will help the company is doing away with debt to the tune of around Rs 19,000 crore. The revenue to wage ratio in case of MTNL has swelled to 90 per cent.

In January, MTNL had sought Rs 500 crore from DoT to pay January salary by raising pending dues for the period 2000-13.

MTNL has sought financial support, 4G spectrum and approvals for asset sales as part of its revival plan. It has pleaded for a refund of interest that it paid for broadband wireless access spectrum which it had returned to the government.

DoT had returned MTNL's loans taken for the purpose on the principal amount while withholding the interests.

The PSU has also sought permission to monetise their land assets as well as the voluntary retirement scheme for employees on the Gujarat model costing Rs 2,120 crore.

MTNL's December-quarter loss widened to Rs 832.26 crore. Total income of the telecom PSU stood at Rs 692.42 crore, 18.7 per cent lower than Rs 852.64 crore notched in the corresponding period of the previous year.

Total expenses climbed to Rs 1,524.6 crore as against Rs 1,491.6 crore in the year-ago quarter.
 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 22 Apr, 2019
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Yes
 No
 Can't say
  Commented Stories
» Calicut University Collaborates with ACCA(1)
» Economic concerns amid poll heat(1)
» Govt mulls 'Online Udyog Aadhaar Form' to ease SME registration(1)
» Appoint distributors, expand your business(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter