BSNL EU Fears Merger with MTNL as it May be a Way to Start Disinvestment in BSNL

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BSNL

The Employee Union (EU) of Bharat Sanchar Nigam Limited (BSNL) is worried about the merger with MTNL (Mahanagar Telephone Nigam Limited). In fact, this is not the first time that the employees of the state-run telco have expressed their concern over the BSNL and MTNL merger. In 2022 as well, the EU of the telco had said that given the position BSNL is in, it wouldn’t be able to take the load of debt and problems of MTNL. Thus for the employees, a merger of the two companies is not a viable option.

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The employees said that they are important stakeholders in the company, but the government has kept the union and associations in the dark about the merger of BSNL and MTNL. The decision to merge the two state-run telecom PSUs (public sector units) was taken by the Union Cabinet on July 27, 2022.

Read More – BSNL and MTNL Merger, is it Necessary

Fear of Disinvestment in BSNL

In a letter seen by TelecomTalk to the telecom secretary K Rajaraman and CMD (chairman and managing director) of BSNL, P.K. Purwar, the employee union wrote that because MTNL is a listed company while BSNL is a 100% govt owned company, the merger could be a backdoor method to start disinvestment in BSNL. The union has demanded that MTNL should be delisted before it is merged with MTNL.