Bailout Blues

The government is considering a Rs 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 Rs 40,000 crore early retirement package, Rs 20,000 crore for 4G spectrum and over Rs 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 efficient private sector rivals such as Airtel and Vodafone Idea too are hanging by a thin thread and struggling to survive the Jio onslaught?

The success of the plan, say experts, will depend on the extent to which the government understands the problems of BSNL, which is going through the worst period in its 19 year old history. In February, it got a lot of flak after failing to pay monthly salaries.