MTNL mulls land deals in revival | india | Hindustan Times
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MTNL mulls land deals in revival

india Updated: Jul 16, 2012 22:52 IST
Manoj Gairola
Manoj Gairola
Hindustan Times
manoj gairola

Battling losses, state-owned Mahangar Telephone Nigam Ltd (MTNL) has proposed developing and leasing out its land bank, surrendering spectrum for providing broadband wireless access (BWA) services and voluntary retirement scheme (VRS) to two-thirds of its employees as part of a "business proposal for revenue generation".

These were a part of the presentation made by MTNL chairman and MD AK Garg to IT minister Kapil Sibal.

MTNL provides telecom services in New Delhi and Mumbai.

During last fiscal, the company reported revenue of Rs 3,696 crore and a loss of Rs 4,104 crore.

The company plans to earn revenue of Rs 200 crore through the lease of its buildings during the current fiscal year.

The company has projected that it has the potential to earn revenue of Rs 400 crore through leasing of its buildings in the next three years.

The company is also eyeing revenue of Rs 3,600 crore through the sale of its built-up area.

The state-run telecom firm has 42,000 employees, out of which nearly 67% are excess employees.

The management has proposed a VRS scheme for these employees. The current wage bill including retirement benefits is around Rs 4,000 crore.

The company has also said that it would get a refund of Rs 4,560 crore by returning the spectrum for providing BWA services.