MTNL soars as Govt defers merger with BSNL

7 Apr 2022 , 12:57 PM

The government has deferred the merger of state-run telecom companies Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) due to financial reasons, including the high debt of the latter, Minister of State (MoS) for Communications Devusinh Chauhan told the Lok Sabha Wednesday.

?Government has approved the revival plan of Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) on 23/10/2019 which inter-alia includes in-principle approval for merger of MTNL and BSNL. Due to financial reasons including high debt of MTNL, the merger of MTNL with BSNL is deferred,? Chauhan said in a written reply to a question by BJP MP Nitesh Ganga Deb.

Earlier the government had planned to merge three state-run entities, BSNL, MTNL and BBNL (Bharat Broadband Network), to create a single state-owned telecom entity.

MTNL is the principal provider of fixed-line telecommunication service in Delhi and Mumbai. It is also present in Nepal through its joint venture United Telecom (UTL) and in Mauritius through its 100% subsidiary Mahanagar Telephone Mauritius Limited (MTML).

On a consolidated basis, MTNL reported net loss of Rs 659.28 crore in Q3 December 2021 as against net loss of Rs 637.78 crore in Q3 December 2020. Net sales declined 15.79% to Rs 303.56 crore in Q3 December 2021 over Q3 December 2020.

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