{"id":1246310,"date":"2023-06-08T09:46:32","date_gmt":"2023-06-08T04:16:32","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1246310"},"modified":"2023-06-08T09:47:06","modified_gmt":"2023-06-08T04:17:06","slug":"govt-may-shutdown-mtnl-due-to-this-reason-all-mtnl-operations-can-be-shifted-to-bsnl","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/govt-may-shutdown-mtnl-due-to-this-reason-all-mtnl-operations-can-be-shifted-to-bsnl\/","title":{"rendered":"Govt May Shutdown MTNL Due To This Reason; All MTNL Operations Can Be Shifted To BSNL"},"content":{"rendered":"\n

According to a Mint report the Central government is planning to shut down the telecom operator Mahanagar Telephone Nigam Ltd (MTNL).<\/p>\n\n\n\n

Shift in plans<\/strong><\/p>\n\n\n\n

\"Govt<\/figure>\n\n\n\n

It will instead transfer MTNL’s workforce and operations to Bharat Sanchar Nigam Ltd (BSNL).<\/p>\n\n\n\n

This is a major change from previous plans to merge the two entities.<\/p>\n\n\n\n

The latest development has come in the wake of mounting debt and persistent loss making by MTNL.<\/p>\n\n\n\n

MTNL\u2019s woes<\/strong><\/p>\n\n\n\n

During the fiscal year 2022-23, MTNL recorded a loss of Rs 2,910 crore, higher than the previous fiscal year’s loss of Rs 2,602 crore.<\/p>\n\n\n\n

Revenue from operations experienced a decline from Rs 1,069 crore in FY22 to Rs 861 crore in FY23.<\/p>\n\n\n\n

Expenses increased to Rs 4,384 crore from Rs 4,299 crore during the same period.<\/p>\n\n\n\n

MTNL’s outstanding debt escalated to Rs 23,500 crore in FY23 from Rs 19,661 crore in FY22.<\/p>\n\n\n\n

BSNL\u2019s comparative performance<\/strong><\/p>\n\n\n\n

On the other hand, BSNL witnessed a rise in revenues to nearly Rs 20,700 crore, surpassing the previous fiscal year’s Rs 19,052 crore.<\/p>\n\n\n\n

Its growth in revenue can be credited to an increased number of fibre-to-the-home (FTTH) connections, augmented business from leased line services, and additional operating income.<\/p>\n\n\n\n

The telco\u2019s FTTH business saw significant growth of 30 per cent year-on-year, surpassing the carrier’s wireless business, which contributed less than a third of the overall revenues and grew by only 7 per cent to Rs 5,638 crore for FY23.<\/p>\n\n\n\n

Relief package inclusions<\/strong><\/p>\n\n\n\n

The government helped BSNL and MTNL out in 2019 and then in 2022 with two relief packages.<\/p>\n\n\n\n

It sanctioned a package worth \u20b969,000 crore in 2019 which included measures such as:<\/p>\n\n\n\n