Department of Telecommunications (DoT) has released Rs 171 crore to pay outstanding salaries to 23,000 employees of Mahanagar Telephone Nigam Ltd (MTNL), and has reached an understanding with Bharat Sanchar Nigam Ltd (BSNL) management and employee unions to release Rs 850 crore before Holi.
While the Rs 171-crore funding to MTNL was part of an internal settlement, Rs 850 crore to BSNL will come from the telco’s internal accurals. The official added that BSNL will be able to pay all salaries and dues amounting to Rs 850 crore before March 21. The financially-stressed BSNL has, for the first time, delayed salaries for February to its 176,000 workforce.
“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 Holi,” a senior official said requesting anonymity.
MTNL, which operates in Delhi and Mumbai, is expected to start salary disbursements from Wednesday.