Will BSNL, MTNL be merged? It's a tough task, says telecom secy

Even as India's telecom market is in full swing led by private telcos, the government is finally all set to take concrete steps for revival of the state-owned BSNL and MTNL. The GoM (group of ministers), led by finance minister P Chidambaram, is scheduled to meet on May 10 to chalk out a roadmap for the two organizations.

The GoM is learnt to have been constituted following Sibal's letter to PM Manmohan Singh, seeking his intervention to stimulate BSNL and MTNL. The GoM is likely to discuss the proposal of both PSUs, sent by DoT. The final call on recommendations would be taken up by the Cabinet.

Speaking to reporters on the sidelines of an industry event, telecom secretary MF Farooqui said that the GoM would discuss both long-term and short-term goals to revitalize BSNL and MTNL. "There are number of issues that need to be discussed over a period of time" he said.

"Merger of BSNL and MTNL is one of the difficult things to do," informed Farooqui. "We are looking at creating synergy between the two organizations," he added. Farooqui also said that the options such as assets monetization would be considered.

The DoT, after getting suggestions from BSNL and MTNL, was mulling multiple options that require Cabinet nod. These include voluntary retirement scheme (VRS), loan from PSU banks, assets management and merger. The latter has got stiff resistance from employee unions, following pay disparity.