The Department of Telecommunications (DoT) has revived a proposal for the merger of incumbents Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) to synergise their business operations across the country, according to news reports.
In an internal note, DoT said that BSNL and MTNL should be merged as they have complimentary operations and can combine their strengths for synergies. It added that the structure of BSNL and MTNL make it difficult for them to be accountable for their performance. Thus, DoT should work towards setting up a multi stakeholder committee to develop a restructuring plan for both firms.
The note added that the committee should have members from public enterprises, DoT and the department of IT and ministry of finance.
