BSNL-MTNL Merger May Be Completed In 24 Months, Says Minister Prasad
Both the debt-ridden companies have rolled out a voluntary retirement scheme that is open till Dec. 3.
The government said the merger of state-owned telecom companies Bharat Sanchar Nigam Ltd. and Mahanagar Telephone Nigam Ltd. is likely to be completed in 18-24 months.
"The Cabinet in its meeting held on October 23, 2019, approved the revival plan for BSNL and MTNL which inter-alia includes in-principle approval for merger of BSNL and MTNL. The process of merger is likely to be completed in 18-24 months," Telecom Minister Ravi Shankar Prasad said in a written reply to a question in the Lok Sabha.
The government has earlier said that till the completion of the merger, MTNL will operate as a subsidiary of BSNL. Both the debt-ridden companies have rolled out a voluntary retirement scheme, which is open for employees till Dec. 3.
Last month, the government had given nod to the merger of the two loss-making telecom firms and approved a Rs 69,000-crore revival package, including monetising their assets and giving VRS to employees.
In the case of BSNL, as many as 77,000 employees of state-owned telecom corporation have opted for the recently launched VRS till now. While in the case of MTNL, 13,532 employees have opted for the VRS scheme so far.
Last month, the government had given nod to the merger of the two loss-making telecom firms and approved a Rs 69,000-crore revival package, including monetising their assets and giving VRS to employees.