2019-08-11_Business_Today

he government is considering a `74,000 crore package for revival

of sick state-run BSNL and MTNL. A Group of Ministers (GoM),

headed by Home Minister Amit Shah, is reportedly deliberating

on ways to monetise assets. The bailout package, say reports, will

involve an over `40,000 crore early retirement package, `20,000

crore for 4G spectrum and over `13,000 crore for network rollout.

BSNL, which is far bigger of the two, will get a lion’s share of these

funds. But the question is — can BSNL be revived in a market that

is changing technologies faster than ever and where its far ef f icient

private sector rivals such as Airtel and Vodafone Idea too are hang-

ing by a thin thread and struggling to survive the Jio onslaught?

The success of the plan, say experts, will depend on the extent to

T which the government understands the problems of BSNL, which

THE HUB CORPORATE

ByMANU KAUSHIK

ILLUSTRATION BY RAJ VERMA

BAILOUT

BLUES

WHY THE GOVERNMENT WILL

FIND IT DIFFICULT TO REVIVE

BSNL EVEN WITH ITS HUGE

BAILOUT PACKAGE.

54 IBUSINESS TODAYIAugust 11 I 2019