GoM constituted to fast track revival plan of BSNL

On December 27, 2019, GoI constituted a 7-member group of ministers to fast track the implementation of revival plan of BSNL and MTNL. The revival plan includes allocation of 4G spectrum and asset monetization. Earlier, GoI approved the revival plan of merging BSNL and MTNL.

Highlights

The seven-member group of ministers include Defence Minister Raj Nath Singh, Telecom Minister Ravi Shankar Prasad, Finance minister Nirmala Sitaraman, Home Minister Amit Shah, Oil Minister Dharmendra Pradhan and Commerce Minister Piyush Goyal.

The crucial elements of the revival plan include workforce, business viability, monetization, issue of bonds and 4G spectrum allotment. GoI allocated Rs 69,000 crores for reviving BSNL and MTNL. Both the entities have been reporting losses over a decade.

Group of ministers

Group of ministers are appointed by the GoI under Transaction of Business Rules, 1961. According to para 6 (4) of the rules, Ad hoc committees of ministers including GoM sha;; be appointed by standing committee of cabinet, cabinet or by the PM. The GoM do not have decision making powers. They investigate and report to the cabinet. On the other hand, Empowered Group of Ministers (EGoM) can make decisions. They are also formed by GoI.

In 2014, EGoM was dissolved and the changes are still under process.

Month: Current Affairs - December, 2019