BSNL, MTNL merger still on cards: Govt

BSNL, MTNL merger still on cards: Govt

By agencies   |   Thursday, 29 December 2005, 08:00 Hrs
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NEW DELHI: The Government is still weighing options for the proposed merger between the two-telecom public sector units (PSUs), BSNL and MTNL and is considering the complexity of issues involved in the restructuring exercise.

Announcing this the Minister of State for Communications and IT, Shakeel Ahmed said, “The government is carefully weighing all options before taking a decision so that interest of all the stake holders are protected and the ultimate objectives of restructuring exercises are met.”

The consultants have submitted their recommendations after examining several alternatives of restructuring including merger of the two PSUs. Meanwhile, Communications and IT Minister Dayanidhi Maran said, “The government had made no decision on merging the two. Presently we are looking at a massive expansion of the Indian telecom sector which is already underway with several multinational telecom companies eyeing the sector for pumping in investments.”

Several options are before the Government. The department of telecom (DoT) is also looking at the option of setting up a holding company under which the operations of the two state-owned companies would be synergies. Also, the two PSUs may become wholly owned subsidiaries of the proposed holding company by proportionately swapping MTNL’s shares with that of the holding company.

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