Govt. defers merger of BSNL, MTNL
Context: 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.
Background:
- In October 2019, the Union Cabinet had given an in-principle approval for the merger, along with a revival package worth almost Rs. 70,000 crore.
- However, due to financial reasons, including high debt of MTNL, the merger of MTNL with BSNL is deferred.
- As per government data, BSNL’s losses for the current financial year till September 20, 2020, stood at Rs. 3,607 crore, while that for MTNL was Rs. 1,220 crore.