Government of India attempts to rescue State-owned telecom companies BSNL and MTNL from loss. The government brings up a bailout plan of Rs 74,000-crore.

A bailout is a type of provision of financial help to a company which otherwise would be on the edge of failure or bankruptcy.

BSNL and MTNL have been ranked as the second-largest and third-largest loss-making company, respectively. The disclosed report regarding the loss of nearly Rs. Rs 13,804 core and MTNL made a loss of Rs 3,398 crore. The primary reason for the drastic loss is the company's poor management, high staff cost, government interference.the outdated technology against the market's growing pace.

This rescue ailing by the government of India offers exit package to thousands of employees of the company. Along with exit package additional 5% that makes the VRS healthy. This is due to the loss-making company failing to pay off the monthly salary of employees.

Government also plans to lower the retirement age to 58 years from 60 years. This will result in low cost to the company.