Subramanian Swamy hails Centre's decision to merge BSNL and MTNL

After the Union Cabinet on Wednesday approved the proposal for revival of BSNL and MTNL by administrative allotment of spectrum for 4G services, debt restructuring by raising of bonds with a sovereign guarantee, reducing employee costs, monetisation of assets and in-principle approval of the merger of BSNL and MTNL, BJP Rajya Sabha MP Dr. Subramanian Swamy expressed his happiness over the Narendra Modi-led BJP government's decision. 

'Very happy with NaMo Govt's decision'

Taking to Twitter on Wednesday, he wrote that he is very happy to learn of NaMo Government deciding to merge BSNL and MTNL and streamline the operations to solve payment issues. He added that he hopes this kind of new approach will be now extended to Air India. Dr. Swamy also said, "Privatisation in the present context of the financial slump is counterproductive." 

Addressing a press conference after the meeting of Union Cabinet, Communications and IT Minister Ravi Shankar Prasad said that the Cabinet approved administrative allotment of spectrum for 4G services to BSNL and MTNL so as to enable these PSUs to provide broadband and other data services. The spectrum will be funded by the government by capital infusion in these PSUs at a value of Rs. 20,140 crore. 

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'Neither MTNL or BSNL is being closed, nor being disinvested'

Ravi Shankar Prasad said that the Cabinet also approved in principle the merger of the Mahanagar Telephone Nigam Limited (MTNL) and the Bharat Sanchar Nigam Limited (BSNL). "We are going to merge MTNL with BSNL. Since MTNL is a listed company with shares, the merger will take time. Till then, MTNL will act as a subsidiary of BSNL," he said. He also said that the government has no plan to close or disinvest MTNL and BSNL and expressed confidence that the BSNL will become profitable in two years. "Neither MTNL or BSNL is being closed, nor being disinvested," he said.

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