Authorities has deferred merger of MTNL and BSNL because of monetary causes
New Delhi:
Authorities has deferred the merger of state-run telecom companies BSNL and MTNL because of monetary causes, Parliament was knowledgeable on Wednesday.
Minister of State for Communications Devusinh Chauhan in a written reply to the Rajya Sabha stated {that a} proposal for the merger of Bharat Broadband Community Restricted (BBNL) and Bharat Sanchar Nigam Restricted (BSNL) is below examination.
“Authorities has authorized the revival plan of Bharat Sanchar Nigam Restricted (BSNL) and Mahanagar Phone Nigam Restricted (MTNL) on October 23, 2019, which inter-alia contains in-principle approval for the merger of MTNL and BSNL. Because of monetary causes together with excessive debt of MTNL, the merger of MTNL with BSNL is deferred,” Mr Chauhan stated.
BSNL Chairman and Managing Director (CMD) PK Purwar, who additionally heads MTNL, has submitted earlier than a Parliamentary panel that the Division of Telecom ought to take into account carving out of over Rs 26,500 crore debt of MTNL and its belongings below a particular objective automobile.
He advised that thereafter operations of MTNL ought to be merged with BSNL.
MTNL was earlier anticipated to show worthwhile by 2020-21 and BSNL by 2023-24 after each PSUs have been collectively given a reduction package deal of round Rs 70,000 crore in 2019.
“With Rs 26,000 crore debt, even when God involves earth and tries to deal with its issues, the corporate can’t be revived. It’s a truth of life; we now have to just accept it,” MTNL CMD informed the panel.
