DoT working on proposal for MTNL, BSNL merger; final call by Cabinet: Source

New Delhi: The Department of Telecommunications (DoT) is “working on” a proposal for merger of cash-strapped BSNL and MTNL as part of efforts to revive the ailing state-owned telecom firms, a source said. The source, privy to the development, said merger is “one of the many components” of the overall revival plan being worked out for the two corporations, and that a final call on the matter will be taken by the Cabinet.

The move assumes significance as the distressed telecom PSUs Mahanagar Telephone Nigam Ltd (MTNL) and Bharat Sanchar Nigam Ltd (BSNL) have been making losses and have faced challenges in clearing staff salaries in the recent past.