The public authority has conceded the consolidation of state-run telecom firms BSNL and MTNL because of monetary reasons, Parliament was educated on Wednesday.
Priest of State for Communications Devusinh Chauhan in a composed answer to the Rajya Sabha said that a proposition for the consolidation of Bharat Broadband Network Limited (BBNL) and Bharat Sanchar Nigam Limited (BSNL) is under assessment.
“Government has supported the restoration plan of Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) on October 23, 2019, which between alia remembers for guideline endorsement for the consolidation of MTNL and BSNL.
Because of monetary reasons including high obligation of MTNL, the consolidation of MTNL with BSNL is conceded,” Chauhan said.
BSNL Chairman and overseeing chief PK Purwar, who likewise heads MTNL, has submitted before a Parliamentary board that the Department of Telecom ought to consider cutting out of over Rs 26,500 crore obligation of MTNL and its resources under a particular reason vehicle.
He proposed that from there on activities of MTNL ought to be converged with BSNL.
MTNL was before expected to turn beneficial by 2020-21 and BSNL by 2023-24 after the two PSUs were together given a help bundle of around Rs 70,000 crore in 2019.
“With Rs 26,000 crore obligation, regardless of whether God comes to earth and attempts to resolve its concerns, the organization can’t be restored. It is an unavoidable truth; we need to acknowledge it,” MTNL CMD told the board.