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Telecom Ministry to merge MTNL with BSNL

Tuesday, 30 Jul 2019
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The Mahanagar Telephone Nigam (MTNL) will be merged with Bharat Sanchar Nigam (BSNL) as part of a revival plan approved by the Telecom Ministry for the two companies. The final decision will be taken by the Union Cabinet. MTNL will be converted into a subsidiary of BSNL following the merger.

The merger will be conducted after sorting out issues. A joint committee will be set up to oversee the entire process over the next 18 months. MTNL operates in two circles – Mumbai and Delhi – in the country.

The new revival plan, which was approved, also included Rs 14,155 crore capital infusion to BSNL by the government to acquire 4G spectrum.

Apart from the capital infusion, land monetisation for meeting the company’s expansion plans -- which will be jointly monitored by BSNL, the Department of Telecommunications (DoT) and the Department of Investment and Public Asset Management (DIPAM) – is also on the cards.

A special purpose vehicle (SPV) will be formed for the land monetisation initiatives, to which BSNL’s loan to Rs 23,000 crore and an equivalent land parcel will be transferred. A financial support for BSNL’s rural exchanges has also been approved.

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