BSNL and MTNL Revival Package from PMO Runs into Legal Snag

Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL), the two state-led telecom operator which were awaiting a revival package from the government have run into legal troubles in the process. According to a new ET Telecom report, the revival package which is driven by the Prime Minister’s Office (PMO) would need to be legally monitored from the Solicitor General of India. Follow this, the Department of Telecommunications (DoT) would take the Cabinet note. Recently, PM Modi’s Cabinet has taken some big-ticket economic decisions. At the same time, BSNL’s 200,000 people strong workforce remains in distress as the employees are being delayed their salaries.

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DoT Asked to Examine Legal Implications of SC Order

An official aware of the matter remarked, “The DoT is awaiting a legal vetting from the Solicitor General of India on whether the 4G spectrum can be allocated administratively to the two state-owned telecom service providers.” The person also added the nod from the cabinet would only be taken after this. Back in June this year, the committee headed by Cabinet secretary Pradeep Kumar Sinha had already asked the Department of Telecommunications (DoT) to examine the legal implications of the allocation of 4G radio waves to the state-led telecom operators, MTNL and BSNL.

As per a note seen by ET, the high-level committee had then recommended that any executive arrangement offering 4G frequencies to BSNL or MTNL would only go through when the legal implications of such a move have been examined. To recall, back in 2012, the Supreme Court in its landmark verdict had quashed 122 licenses. The SC also noted at that time that the state was duty-bound to go through a non-discriminatory method of an auction’ when it had to transfer or alienate the natural resources.