In what could come as a lifeline for the cash-strapped BSNL, the government is in talks with several banks to provide the company with a term loan of Rs 2,500 crore to help it survive till the centre comes up with a revival plan, reported Business Standard, citing sources.
Negotiations are underway to get favourable repayment conditions, said the report on Monday.
According to one of the persons BS spoke to, the loan will help BSNL meet its day-to-day expenses such as operating expenses, salaries, bill payments, vendor payments, etc.
Another official, according to the paper, said that the loan, once finalised, will be enough to keep the company afloat for at least six months.
While the report said that the negotiations are in its final stage, experts believe the amount is too small.
“There is no solution to BSNL’s problems unless its staff is reduced. Monetising its land assets is not simple. The land for setting up telephone exchanges was given by states and land is a state subject. How the government sells that land or the assets needs to be seen,” an expert was quoted as saying in the report.