Cabinet approved pension proposal for MTNL employees

The Union Cabinet on 26 December 2013 approved the pension proposal for 43000 MTNL (Mahanagar Telephone Nigam Ltd) employees, who joined the public sector company from the Department of Telecom (DoT). The pension plan will cost about 500 crore rupees annually to the Government of India.

The Cabinet approved plan mentions that the employees of the government of all categories (Group A, B, C & D) absorbed in MTNL and who have opted for the combined service will be given a similar treatment in the matter of payment of pensionary benefits as available to the absorbed employees of BSNL (Bharat Sanchar Nigam Ltd).

Within three months the necessary amendments will be done in the Rule 37-A of CCS (Pension) Rules 1972 to include MTNL along with BSNL in respect to Government pension liability, which was previously discharged by MTNL. This amendment would help in resolving the long-pending MTNL pension issue.

The Government approved the pension plan as a part of plan to revive BSNL and MTNL. To review the two PSUs, a multi-pronged strategy was presented by the Department of Telecom to the EGoM. The strategy involves refunding the payment for buying the broadband spectrum by two companies. Last time, the PSUs took a broadband spectrum in 2009 without participation in the auction and were asked to pay the bid price quoted by private players. But the two firms failed to make the payment of the auction.

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