As part of a revival plan, the telecom ministry has given its nod for the merger of the loss-making state-owned Mahanagar Telephone Nigam Ltd (MTNL) with Bharat Sanchar Nigam Ltd (BSNL), reported The Hindu BusinessLine, adding that following the merger, the former will be converted into a subsidiary of the latter.
According to a memo approved by telecom minister Ravi Shankar Prasad, a joint committee will oversee the entire process, the report said. It added that the loss-making PSUs will be merged after sorting out issues such as human resources.
The new revival plan was approved by the telecom minister on Friday and has been circulated in different ministries for comments, the report said, citing sources close to the development.
The plan also includes a Rs 14,155 crore capital infusion to BSNL by the government to acquire 4G-spectrum, along with land monetisation for meeting the company's expansion plans — which will jointly be monitored by BSNL, Department of Telecommunications (DoT) and Department of Investment and Public Asset Management (DIPAM), the report said.
MTNL, which is listed on the Indian stock markets NSE and BSE, operates in two major circles - Delhi and Mumbai.