Is it the right time to merge MTNL with BSNL? Situations have led to a few quick decisions this week that seem to make it the right time for the merger. After several months of discussions among senior officers and Ministers of the telecommunications department, the Telecom Ministry has given its consent for the merger of Mahanagar Telephone Nigam Ltd (MTNL) with Bharat Sanchar Nigam Ltd (BSNL). The Ministry is in the view that this move can be the best revival plan for the loss-making PSUs.
Telecom Minister Ravi Shankar Prasad, in a memo, has said that a joint committee would be set up to monitor the whole process over the next 18 months. The Minister had given his consent to the plan around July 26th. The plan was further circulated to other ministries for their comments. The cabinet, however, will make the final decision on this.
A Special Purpose Vehicle (SPV) will also be constituted for taking the decisions related to land monetization. The BSNL's loan to the tune of Rs 23,000 crore and an equivalent land parcel will be moved to this SPV.