BSNL, MTNL Merger likely by July next year
BSNL (Bharat Sanchar Nigam Limited) is an Indian state-owned telecommunications company headquartered in New Delhi, India that offers services in the whole country except Mumbai and Delhi. MTNL (Mahanagar Telephone Nigam Limited is a state-owned telecommunications service provider in the metro cities of Mumbai and New Delhi in India and in the island nation of Mauritius in Africa. The much awaited merger of these two companies are likely to happen by the month of July next year. Currently both the companies are busy in combining the operations by providing services as a single source.
“The deadline of June-July 2015 has not been officially confirmed to the organization but the merger is likely to take place in the time frame,” BSNL Director (consumer mobility) Anupam Shrivastava told. He added there are few things which require to be sorted out before the merger takes place which include the salary issues and debt on MTNL books.
“Commercially it makes sense for the two companies to merge as it will lower the tax outgo. Currently, BSNL is billing MTNL and vice versa for services for which both are paying taxes. If it becomes one entity, the tax outgo will be less,” Mr. Shrivastava said. He, however, said before we merge, there are some problems which need to be resolved. In order to retain this loss, the government can issue a flexible loan to the new merger.
Mr. Ravi Shankar Prasad, Minister of communication and IT has concluded as this is just an idea on consideration and yet to take final call and also he met the BSNL and MTNL senior management recently to discuss the important points that mainly focus on the benefits and losses of this merger.
BSNL, MTNL Merger likely by July next year Reviewed by Praveen P on Tuesday, September 09, 2014 Rating: