DoT meet to discuss BSNL-MTNL synergy tomorrow

The department of telecom (DoT) will meet the CMDs of two telecom PSUs - BSNL and MTNL - and consultant I-Sec tomorrow to discuss the possibilities of either making MTNL a subsidiary of BSNL or merging it with BSNL.

I-Sec, the consultant appointed by the government to look into the possibilities of synergies of BSNL and MTNL, has suggested that MTNL be made the subsidiary of BSNL as the first option with both the PSU boards remaining independent.

In case of subsidiarisation of MTNL, BSNL may have to buy out the 56% stake the government holds in MTNL. While MTNL is listed in India and the US, BSNL is wholly-owned by the government.

BSNL would then have to be listed, and its  shares alloted to MTNL shareholders.

The second option was MTNL's merger into BSNL, I-Sec said.

BSNL and MTNL have taken diametrically opposite positions on the synergy move with the former favouring taking MTNL as its subsidiary instead of going for a merger, and MTNL opposing the suggestion.