The salaries will be supported from Rs 250 crore that the telecom PSU has available as cash and cash equivalents, the CMD said
New Delhi: Even as the state-owned telecom service provider battles financial troubles, the Chairman and Managing Director (CMD) of Mahanagar Telephone Nigam Ltd (MTNL), PK Purwar, has assured that the PSU will be able to pay the April salaries to its 22,000 employees, as it plans to tap internal accruals and available cash. A revival plan for MTNL is still in the pipeline.
The news comes as MTNL and Bharat Sanchar Nigam Ltd (BSNL) reel under massive debt and high operating costs. Off late, the companies have been facing issues with clearing its employees’ salaries.
‘We do not see any challenge in paying salaries’
Despite the financial troubles, the MTNL CMD has assured that the company will be able to pay the April wages, totalling around Rs 200 crores. “… we do not see any challenge in paying salaries for the month of April. We have sufficient cash balance and internal resources and will be able to meet our liabilities without any issue,” Purwar said. The salaries will be supported from Rs 250 crore that the telecom PSU has available as cash and cash equivalents, the CMD added.
‘MTNL chasing all ‘legitimate’ claims to get funds’
While asserting that MTNL has not sought any grant from the Telecom Department to pay off its about Rs 500 crore pending dues, Purwar said that the PSU is only chasing “legitimate claims” which “need to be addressed.”
“We are following up on all our legitimate claims…of almost Rs 1,000 crore (from various sources). Every single penny is being chased. There are outstanding from Telecom Department, also we have to receive some money in Income Tax refund (about Rs 100 crore), which we are pursuing,” he said.