Government begins hunt for new MTNL CMD

The Indian government has begun hunt for the new head of loss-making telecom operator Mahanagar Telephone Nigam Limited (MTNL) after a gap of two years. The telecom PSU has been operating without a full-time CMD since May 30, 2014, when A K Garg retired from the post.

According to a PTI report, the government has constituted a search-cum- selection committee under the chairmanship of Chairman, PESB for appointment to the post of CMD, MTNL on deputation basis for a period of five years.

The report noted that the selection ‘on deputation’ basis will make government officers in any department eligible, who can also go back to their service after their tenure.

P K Purwar, the Director (Finance) of MTNL is holding the post as additional charge. He had earlier held the additional charge between June 2014 and June 2015. Narendra Kumar Yadav, a Member (Services) Department of Telecom, was also given the additional charge of CMD on June 8, 2015.

In May this year, Telecom Commission had given its nod to a proposal to provide voluntary retirement scheme (VRS) to employees at MTNL. The move is aimed at reviving the loss making telco which has been losing revenue of up to Rs 2000 crore per year.

MTNL posted a consolidated net loss of Rs 2,012.24 crore for year ended March 31, 2016, as compared to Rs 2,901.16 crore at the end of March 2015. As per reports, the telecom PSU expects to post operational profit at the end of the current financial year and turn profitable in 2017-18.

The state-run telco failed call drop test conducted by telecom regulator, Trai. The network quality of MTNL has deteriorated sharply due to shortage of equipment. MTNL had reportedly floated a tender for the network transformation, but it shelved off that project.

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7 Comments on "Government begins hunt for new MTNL CMD"


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S Gopal
August 1, 2016 3:11 pm 3:11 PM
The previous CMDs including the acting CMDs seem to have stabilized MTNL from the free fall that it was experiencing a few years ago. The new CMD just as the present CMD of Air India, will have his work cut out for him, to steer the behemoth PSU into profits. It is feasible if they take some strong and unwavering measures to ensure that the PSU becomes profitable. BSNL seems to have stabilized under the incumbency of the previous two CMDs and the new CMD is leading it to better days. If MTNL consistently shows profitability who knows the government… Read more »
July 31, 2016 3:37 pm 3:37 PM

Merge mtnl with bsnl. Make it msnl. Modi sanchar nigam limited lol. N mainly improve this terrible network and give some current to ur lethargic employees. Though customer care of private operators in no better which is an opportunity for mtnl/bsnl to grab d market through awesome customer service. Pull up ur socks man dont waste such a solid infrastructure.

S Gopal
August 1, 2016 2:51 pm 2:51 PM
Newspapers and portals have been abuzz for quite some months about the possibility of merger, without a real merger occurring. MTNL wants to hand over its Dolphin operations to big brother BSNL Mobile (CellOne) which will be beneficial for both since MTNL operates in only two circles while BSNL operates in all circles with the exception of the circles where MTNL operates. I presume when you state the terrible network you meant the terrible network of minnows MTNL Dolphin. True, Dolphin has to understand that they are operate in two megacities of India and they treat their operations here on… Read more »
July 31, 2016 11:46 am 11:46 AM
1) MTNL had no foresight to develop and expand on infrastructure. 2) MTNL Launched Fiber Thrill (FTTH) plans during Congress regime only to please their political MLA bosses. It was just a paper launch with zero fiber infrastructure. Call up MTNL customer care and they won’t be able to provide FTTH to a building directly opposite to MTNL exchange. 3) It’s 2016 and they cannot even provide 2 Mbps non FUP unlimited for Rs. 1000. This itself says a lot about their network capacity. 4) They have insane number of broadband and 3G plans. The sheer number of plans drive… Read more »
S Gopal
August 1, 2016 3:02 pm 3:02 PM
The likelihood of MTNL folding up has remain on the cards even since we liberalized our economy and allowed markets to have a bigger share alongside the government to lead all of us Indians towards a better India. In this context many would agree that the competition to MTNL Triband has done well for itself with better plans, faster and stable speeds and customer care executives who are compartively young, relatively less lethargic and with a beaming smile bordering on a Glasgow smile. If so the fruits of the competition’s services are unavailable to every potential customer even in the… Read more »
S Gopal
August 1, 2016 4:27 pm 4:27 PM

Pardon, I meant the likelihood of MTNL folding up has remained on the cards ever since we liberalized our economy…

July 31, 2016 3:34 pm 3:34 PM

Soo true