Indian government officials reportedly met today to discuss closing down some loss-making state-owned companies, which could include mobile operators Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL).
Cabinet secretary Ajit Seth called…
Indian government officials reportedly met today to discuss closing down some loss-making state-owned companies, which could include mobile operators Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL).
Cabinet secretary Ajit Seth called the meeting to explore options for the futures of 10 companies with a combined net loss of Rs245bn (US$4bn) in 2012/2013, the Economic Times reported.
Department of Public Enterprises officials have drawn up proposals for shutting down some of them, the report stated.
An earlier report said that the Department of Telecommunications (DoT) had set a deadline of 31 July 2015 to conclude a merger between BSNL and MTNL. In a recent presentation to Prime Minister Narendra Modi, the department said it expected the government to approve the proposed merger by 30 June next year, the Economic Times reported in early September
According to this report, the DoT also set deadlines to complete organisational restructuring plans at both telcos ahead of the merger. These include a cut-off date of 31 December 2014 to spin off BSNL’s mobile towers into a separate, wholly-owned unit and to monetise some of the telcos’ property assets.
BSNL and MTNL have both been struggling in India’s crowded mobile market and, since 2010, several options have been considered to revive them, including a merger and tower sales.
