Cabinet okays ₹56,000-crore plan to merge BSNL, MTNL

India will merge its twin state-run telecom companies in an effort to turn around the money-losing firms, which it considers core assets.

The strategy would also see the government look at ways to exploit the vast land assets of the two companies while paring their manpower by offering incentives to employees to avail an early retirement plan.

The ₹56,000 crore merger and revival plan for Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telecom Nigam Ltd (MTNL) was approved by the Union cabinet on Wednesday. MTNL operates in Delhi and Mumbai, and BSNL in the rest of India.