Keeping The Peace DoT releases Rs 171 crore to MTNL, settles unpaid BSNL salaries

New Delhi: The department of telecom (DoT) has released Rs 171 crores for paying the unsettled salaries of 23,000 staffers from Mahanagar Telephone Nigam Limited's (MTNL). DoT has also come to an understanding with the employee unions and management of state-owned Bharat Sanchar Nigam Ltd (BSNL) to settle unpaid salaries before the Holi festival, which falls on March 21, a top ministry official says.

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"We have released Rs 171 crore on Tuesday for MTNL to pay salaries and arrears to its employees. The BSNL management and employee unions have been convinced that their salaries will be paid before the festival of Holi," a senior official who does not wish to be named said. MTNL will possibly begin salary disbursement from Wednesday.

"We have released Rs 171 crore on Tuesday for MTNL to pay salaries and arrears to its employees. The BSNL management and employee unions have been convinced that their salaries will be paid before the festival of Holi,"

"BSNL will be able to pay all salaries and dues amounting to Rs 850 crore before March 21," said the official. BSNL will be releasing this fund from its own cash flow.

Last month, BSNL delayed salary for the first time

Cash-strapped BSNL has, for the first time, delayed last month's salary disbursement to its 1.70 lakh workforce. Telecom Minister Manoj Sinha met Finance Minister Arun Jaitley and sought funds to meet salary payments to telecoms firms.

The rescue plan of both the telecos is being considered with the department, which has recently taken the issue up to the Digital Communication Commission, the top decision making inter-ministerial committee.

To stay alive in the competitive market, both MTNL and BSNL were also demanding fourth-generation or 4G spectrum.