Surprise move by Govt, cancelled merger plan of BSNL-MTNL: Know the reasons below
New Delhi: The government on Wednesday refuses the merger between BSNL and MTNL in the parliament. Now there will be no merger of these two telecom public sector units. The deferred has been happened due to financial reasons, including the high debt of MTNL, the government said.
“Due to financial reasons, including high debt of MTNL, the merger of MTNL with BSNL is deferred,” Telecom Minister Ravi Shankar Prasad said in a written reply to Lok Sabha. However, close co-operation and service integration between BSNL and MTNL has been undertaken,” he added.
In October 2019, the Union Cabinet had given in-principle approval for the merger, along with a revival package worth almost Rs 70,000 crore.
Currently, both BSNL and MTNL have approximately Rs 45,000 crore combined debt. As per government data, BSNL’s losses for the current financial year till September 20, 2020, stood at Rs 3,607 crore, while that for MTNL was Rs 1,220 crore.
Join PSU Connect on WhatsApp now for quick updates! Click here
Read Also : PESB Recommends Director (Finance) for SPMCIL
News Must Read
- G Gayatri Prasad assumes charge as Director (Finance) of BDL
- GRSE builts indigenous INS Nirdeshak to join Indian Navy’s fleet
- Free Travel During Maha Kumbh Mela? Indian Railways Clarifies...
- Indian Army and BEL collaborates to establish advanced AI hub in Bengaluru
- SJVN’s Rampur Hydro Power Station Beats Target by 3 Months
- Bhutanese Delegation Visits at THDCIL's VPHEP Project
- Abhijit Majumder appointed as CFO at Oil India Ltd
- RITES bags Major order of Rs. 122.60 Crores
- Coal & Lignite Public Sectors establishes 16 Eco-Parks over last 5 years to promote tourism
- BEML and NHPC Ltd Sign MoU for Hydroelectric Power Plants