New Delhi, Oct. 24 -- Giving a huge boost to the ailing Government telecom companies BSNL and MTNL, the Union Cabinet on Wednesday approved their merger and announced a revival package of Rs 68,751 crore. The Government will also provide 4G spectrum to the merged unit, pay their GST and other dues, and offer an attractive VRS scheme to employees above 50 years.

"In case of BSNL and MTNL, the Government's view is clear. These are strategic assets of India. The entire Army network is maintained by BSNL," said Telecom Minister Ravi Shankar Prasad, reiterating no privatisation of these two telecom companies.

Prasad said that MTNL will be merged with BSNL soon and will operate as a subsidiary of BSNL. The package includes raising of Rs 15,00...