The merger of the two telecom public sector units — BSNL and MTNL — has been deferred due to financial reasons, including high debt of MTNL, the government informed Parliament on Wednesday.
In October 2019, the Union Cabinet had given an in-principle approval for the merger, along with a revival package worth almost ₹70,000 crore.
“However, due to financial reasons, including high debt of MTNL, the merger of MTNL with BSNL is deferred,” Telecom Minister Ravi Shankar Prasad said in a written reply to Lok Sabha.
As per government data, BSNL’s losses for the current financial year till September 20, 2020, stood at ₹3,607 crore, while that for MTNL was ₹1,220 crore.
