Revival efforts: DoT working on proposal to merge MTNL, BSNL

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 the 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 MTNL and BSNL have been making losses and have faced challenges in clearing staff salaries. “Merger is one of the many components of the overall revival plan because clearly MTNL cannot stand by itself. Finally, the Cabinet has to take a view on that,” the source said, adding that the plan entails MTNL being merged with BSNL.