Attacking the BJP government for giving in-principle approval for the merger of MTNL and BSNL, Congress leader Rahul Gandhi alleged that the process would be followed by "mismanagement, mega losses and eventually selling the entity to crony-capitalist at cheap rates."
"Step 1: Merge, Step 2: Mismanage, Step 3: Show Mega Losses, Step 4: Sell Cheap to Crony Capitalist #BsnlMtnlMerger," tweeted Rahul Gandhi.
The Union Cabinet on Wednesday approved the merger of Mahanagar Telephone Nigam Limited (MTNL) with Bharat Sanchar Nigam Limited (BSNL).
Briefing reporters after the cabinet meeting Communications and Electronics and Information Technology Minister Ravi Shankar Prasad said that a revival plan for BSNL and MTNL has been approved.
"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 BSNL will become profitable in two years.
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