"BSNL has cleared salary payments of all employees for June from internal accruals of about ₹2,000 crore," an official source, who did not wish to be named, told PTI.

The company has cleared around ₹750 crore for salaries, paid interest of around ₹800 crore on loans and rest of the funds have been approved for operational expenses like electricity bill payments, partial dues of vendors etc."A finance wing official has confirmed that they have received funds for June salary and it will be credited in the accounts of employees on Monday," All India Unions and Associations of Bharat Sanchar Nigam Limited (AUAB) Convenor P Abhimanyu said.

According to the source, the company has sent demand of ₹14,000 crore to the Department of Telecom in April but is yet to receive it.

The demands include payment for excess pension amount, dues for rolling out mobile network in naxal effected area, and interest it paid on BWA spectrum, which was returned to the government, among others.

The total debt on BSNL is around ₹15,000 crore, which is lowest in the industry.

Meanwhile, the government has appointed MTNL Chairman and Managing Director (CMD) P.K. Purwar as the CMD of BSNL for a period of three months starting today (1 July), subject to the approval of the Appointments Committee of the Cabinet (ACC), for ensuring continuity at the struggling PSU.

The government has been promising to revive the PSUs - BSNL and MTNL - and the proposals in this regard are pending with the DoT.