Minister of State for Communications Devusinh Chouhan told Parliament on Wednesday that the government has postponed the merger of Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) due to financial reasons, including high debt of MTNL.
In a written reply to a question in the Rajya Sabha, Chouhan said that the government, however, is considering the proposal for merger of Bharat Broadband Network Limited (BBNL) and BSNL.
Indian Express had reported on January 9 that the government has decided to merge BBNL and BSNL by the end of this financial year and the BharatNet work done by BBNL is likely to be completed later.
The merger of BSNL and MTNL, approved by the Union Cabinet in October 2019, was a part of the revival package for both the telcos, as a part of which employees of both the telcos will be given the option to choose voluntary retirement from service. Retired employees have been given a lump sum amount along with some retirement benefits.
The cabinet then also approved a Rs 29,937 crore revival package for the two loss-making telcos. The revival package includes monetization of sovereign bonds worth Rs 15,000 crore and assets worth Rs 38,000 crore over the next four years.