DoT plans new holding company for BSNL, MTNL
The department of telecommunications (DoT) is actively considering setting up a holding company, with state-run telecom companies Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) as its subsidiaries. The move is expected to revive the ailing public sector undertaking companies, by synergising their operations.
This is one option recommended by IIM-Bangalore in a report on measures for reviving the firms, according to a senior official from the department. The others include delisting MTNL and then merging it with BSNL, and MTNL becoming a subsidiary of BSNL.
“The first option of a holding company, with two public sector undertankings (PSUs) as subsidiaries, looks most feasible, as of now. In this, MTNL won’t have to be delisted. And, we can easily synergise their operations,” the official added. DoT had asked IIM Bangalore to undertake a feasibility report on the merger of BSNL and MTNL. “A final decision is expected to be taken in next few months, which will go for a Cabinet approval subsequently,” the official said.
Mansi Taneja | New Delhi November 6, 2015 Last Updated at 00:14 IST