MTNL Will Likely Act as a Subsidiary of BSNL After Merger: Report

State-run telcos BSNL and MTNL are reeling under losses right now and there have been merger talks going on for a while now. However, government officials denied the merger of BSNL and MTNL in the past even though reports suggested that merger talks are going on internally. According to a new report, the government is planning to merge both the telcos under the upcoming revival package. For the unaware, the government is preparing a revival package for both MTNL and BSNL and the report coming from Business Line states that the package is ready and it has received Telecom Ministry approval as well. Also, post the merger, MTNL will be converted as the subsidiary of BSNL, which is an interesting aspect to consider.

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BSNL and MTNL Merger to Happen Soon as Government Finalises Revival Package

As part of the revival package which has been approved by Telecom Ministry, state-run telcos Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) will be merged finally. However, the government is currently in the process of sorting major issues like human resources within both the companies. BSNL and MTNL have a lot of employees

“A joint committee will be put in place to oversee the entire process over the next 18 months, according to a memo approved by Telecom Minister Ravi Shankar Prasad,” according to the report by Business Line.

For years now, there have been a lot of talks regarding the merger of BSNL and MTNL, but several times, ex- Telecom Minister Manoj Sinha rubbished the rumours himself that there are no such plans. BSNL’s current state is not looking promising at all as the telco is struggling to pay salaries to the employees as well. The same goes for MTNL as well.