The government has also announced an 'attractive' voluntary retirement scheme (VRS) for BSNL and MTNL employees after announcing the merger of the two telcos.
"If an employee is 53-and-a-half years old and opts for VRS, he will get 125 per cent salary, pension and gratuity till the age of 60," Minister for Information and Broadcasting Ravi Shankar Prasad said at the press briefing after the Cabinet meeting.
Government of India will be putting in Rs 29,937 crore on ex-gratia account and Rs 12,678 crore for pensionary benefit, the minister stated. The government will also adjust GST worth Rs 4,000 crore that will have to be paid for granting 4G spectrum to BSNL and MTNL, he said.
The minister evinced hope that the steps taken in respect to the two state-run telecom companies would help make BSNL EBITDA positive within two years, and will make the company profitable after that.
"Narendra Modi government has offered a very generous financial assistance to revive BSNL and MTNL. Now I would like to urge the employees of both these PSUs to work hard and help Govt in making these organisations profitable," Prasad said.