The central government may hand over the operations of debt-ridden Mahanagar Telephone Nigam Limited (MTNL) to Bharat Sanchar Nigam Limited (BSNL) through an agreement. Earlier, the option of merging MTNL with BSNL was also considered. The final decision in this regard can be taken in a month.

A source said that in view of the high debt on MTNL, its merger with BSNL would not be the right option. After a decision is taken in this regard, this proposal will be placed before the Committee of Secretaries. After getting approval from this committee, this proposal will go to the Union Cabinet. Recently, in a filing, MTNL had said that it cannot pay interest to some bondholders due to lack of sufficient funds. MTNL’s services are in the capital Delhi and Mumbai.

 

BSNL has also been facing difficulties for the last few years. Recently, a request has been made to Prime Minister Narendra Modi to help the company. Bharatiya Mazdoor Sangh (BMS) has said that the presence of BSNL is important to control the dominance of private telecom companies in pricing. In a letter to Prime Minister Modi, BMS has requested that the central government ensure that BSNL is allowed to use 4G and 5G equipment from international vendors until indigenous technology is developed. The letter states, “We understand the importance of self-reliant India in telecom and support it. Along with this, we believe that it is important for BSNL to get permission to upgrade its existing infrastructure until indigenous technology is developed, so that it can launch services.” Recently the company has started 4G service.

BMS General Secretary, Ravindra Himte has said in this letter that as a telecom company providing 4G and 5G services, the presence of BSNL is in the interest of the country and the common people. He said that due to the absence of new mobile services, the company is losing subscribers and this is affecting its financial condition and employees.