According to sources, the meeting, which took place on Monday, went on for about 45 minutes and a presentation was given to the Prime Minister about the initiatives being taken by BSNL for its revival strategy.
Apart from Prasad, senior officials of DoT and BSNL were also present in the meeting.
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The PM wanted a complete presentation of the entire working of BSNL and the legacy issues faced by the company were outlined to him, a source said.
Mr Modi was also briefed about the steps being taken to improve the profitability of the company, the source added.
Prasad had earlier said that the government was committed to reviving BSNL and a number of initiatives are in the pipeline to bring the PSU back as a market leader.