New Delhi : The Department of Telecommunications has set up a committee to study the recommendations of a Deloitte report which has suggested the merger of Mahanagar Telephone Nigam Ltd with Bharat Sanchar Nigam Ltd, MTNL CMD, P K Purwar told reporters on Wednesday.
Reacting to the news, shares of MTNL rose 7 per cent. The report has suggested two options for MTNL’s revival, Purwar said, reports Cogencis. The first option has 7-8 standalone recommendations including merging MTNL’s wireless division with BSNL, implementing voluntary retirement scheme at MTNL, monetisation of the company’s land and building, and financial support for the company’s network expansion, he said.
“Option two is complete merger (of MTNL) with BSNL,” he said. The loss-making public sector telecom company had forwarded the report to the government a few months ago. MTNL has a debt of close to Rs 20,000 crore. A parliamentary panel on March 16 had suggested that the government set up an expert committee to look into a possible merger of MTNL and BSNL, as it could give both a chance to compete in the telecom sector against emerging consolidated private players.
