BSNL-MTNL merger shelved as GoM says not feasible; Cabinet to meet soon

Move to merge may erode BSNL value, say officials

The plan to revive the state-owned telecom companies — Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) — by merging the two entities is set to be shelved after almost two decades of deliberations on the matter. A six-member group of ministers (GoM), mandated to take a call on the issue, is learnt to have recommended last week that a merger would neither be beneficial nor feasible, thereby closing a long-drawn chapter in the telecom sector.

The Union Cabinet will meet soon to formally decide against such a merger.  

While the merger idea goes back to the time of Pramod Mahajan