The government on Thursday allowed state-run telecom firms Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) to get refunds of a total Rs 112.6 billion by returning their 4G radio spectrum.

By returning their 4G radio spectrum to the government, BSNL will receive Rs 67.24 billion, while MTNL will get Rs 45.34 billion, Information & Broadcasting Minister Manish Tewari told reporters.

Mr. Tewari added that the payment of the money would be staggered and done over a period of time.

Speaking to reporters, Mr. Tewari said, "The payout would be staggered and done over a period of time. The GoM was of the view that BSNL and MTNL did not participate in the auction of BWA spectrum, so it would be better to refund..."

The two companies had received the radio spectrum in 2010 but haven't yet launched the services. The decision aims at providing indirect financial support to the two money-losing telecom services providers.

BSNL has been reporting losses for last five fiscals. For the fiscal 2012-13, it reported a loss of Rs 8,198 crore. MTNL has been suffered huge losses for the last nine quarters in a row. In the July-September quarter of 2013, it suffered a loss of Rs 947 crore.