Making MTNL a subsidiary better option: BSNL CMD

BSNL CMD A K Sinha today said the option of making MTNL a subsidiary of the company is the favoured option as it involves no financial
implications, and the boards will remain independent after the proposed move.

"We are studying the report of I-Sec. The final decision would be taken by the government. Going for the option of making MTNL a subsidiary of BSNL may be good as it involves no financial implication, and there would be independent boards," Sinha said.

The I-Sec report had suggested that if MTNL was made a subsidiary of BSNL, the two boards will remain independent and BSNL will have to be listed.

BSNL's comment comes ahead of the meeting convened by the department of telecom (DoT) on March 21 where the options to synergise both PSUs would be discussed.

Making MTNL a subsidiary of BSNL is the most favoured option suggested by I-Sec.

MTNL, meanwhile, has opposed the subsidiary route, saying it would defeat the purpose of the synergy.

MTNL CMD R S P Sinha has said that a merger is a better route as MTNL is a listed company.