MTNL board empowered to set tariffs and form JVs

BANGALORE: The board of directors of Mahanagar Telephone Nigam Ltd. (MTNL) has been given more powers to speeden up the decision-making process and to run the company professionally in view of the competition from the private operators.

The extraordinary general body meeting of the company amended the memorandum of association and article of association to give more powers to the board of directors. According to a MTNL press release, it will now be able to purchase equipment and incur capital expenditure for its expansion without any monitory ceilings, it will be able to form technical joint ventures, set up its own subsidiaries both in India and abroad and it will get flexibility in setting up tariff for the services it provides. Previously, it was required to get approval from the communications ministry for these decisions including purchase of equipment worth more than Rs 20 crore.

"The board is meeting on December 3 in view of the new powers given to it. Now that we have been given more powers, we will form a new company for providing Internet operations,'' said chairman and managing director of MTNL S. Rajagopalan.