Merger of BSNL, MTNL suggested to plug losses

New Delhi: A Parliamentary panel has recommended the merger of MTNL and BSNL to give them a fighting chance to take on the might of private sector which is undergoing consolidation.

“The committee are of the view that for the long-term survival and success of MTNL and BSNL, their merger would only be a viable proposition — in view of the fact that their merger would give both the entities a chance for competition against the emerging consolidated private sector players,” said  43rd report of the Committee on Petitions tabled in the Parliament on Friday.  

In an earlier report, the  committee had recommended the option of handing over the management of BSNL and MTNL to those professionals — who have a proven track record of facing a stiff competitive environment coupled with efficient management of finances, equipment, manpower and modern marketing strategies.

It had asked department of telecommunications to formulate and implement a multi-pronged strategy which included one-time infusion of funds with stringent firewalls of accountability, technological advancement and network improvement.  

However, the committee on Friday noted that the response by the telecom department showed that the ministry is not serious about introducing the technological advancement for their network improvement or the infusion of funds still remains a problem area for embarking upon the reforms process in this vital public sector.

“The committee also note that the ministry is silent on the issue of handing over the management of BSNL and MTNL to those professionals who have a proven track record of facing a stiff competitive environment coupled with efficient management of finances, equipment, manpower and modern marketing strategies,” said the report.

The report added that the panel desires that the ministry should continue pursue with the Centre for infusion of funds for initiating the reforms process in the right earnest.