Shares of loss-making Mahanagar Telephone Nigam Limited (MTNL) hit their upper circuit of 20% to touch ₹7.87 on reports of the government planning to revive the telecom company.
MTNL shares closed 16.46% higher at ₹7.64 as the counter saw a jump in volume by 8.4 times in a weak Mumbai market on Friday, valuing the company at ₹481.32 crore.
The Prime Minister’s Office (PMO) is learnt to have asked a panel, looking into the revival of MTNL and BSNL, to explain if the two telecom PSUs can be turned around.
This was after the Finance Ministry raised objections to a proposal moved by the Department of Telecommunications (DoT) for reviving the two PSUs.
DoT had proposed a ₹74,000-crore revival package for Bharat Sanchar Nigam Limited (BSNL) and MTNL as closure of BSNL alone would cost over ₹95,000 crore to the exchequer. The plan includes proposed merger of MTNL with BSNL, voluntary retirement scheme (VRS), allotment of 4G spectrum and capital expenditure needs.
