Telecom Minister Kapil Sibal is desperately seeking a bailout package for loss-making Bharat Sanchar Nigam Ltd ( BSNL ) and Mahanagar Telephone Nigam Ltd (MTNL) even as the government has set up a group of ministers (GoM) to look into the funding of the two public sector companies.Top officials in the department of telecommunications (DoT) said that a worried Sibal had sought Prime Minister Manmohan Singh's intervention last week. Senior officials said that the minister's concern stems from the fact that GoM has not held a meeting on the issue because it is busy dealing with the political turmoil caused by the repeated disruption of the Budget Session of Parliament.In a letter addressed to Singh recently, Sibal stated that the two companies are under extreme financial stress. "Although results for the 2012-13 fiscal have not yet been declared, I expect the net worth of MTNL to have been completely eroded. BSNL is expected to make a loss in the range of Rs 10,000 crore this fiscal (FY13)," Sibal wrote. MTNL has been literally run into the ground with its salary bill exceeding revenue. The company has hired global consultancy firm Deloitte to chalk out a revival strategy.BSNL is in dire straits and needs funds to expand its network along with broadband connectivity to 1.5 million schools and setting up wi-fi hot spots across the country. It has also entered into a deal worth Rs 1,220 crore with Chinese telecom gearmaker ZTE. The company will supply the required infrastructure for 2G network expansion besides creating additional GSM network requirement for 4.22 million lines in the eastern and north-eastern circles.BSNL is utilising its assets, building capacity in network for handling a large subscriber base and exploring new sources of income, which will help the company to reduce losses. Both BSNL and MTNL are also looking at reducing their workforce by 1.21 lakh by offering a voluntary retirement scheme to staff, which will cost them a whopping Rs 17,445 crore.