Mahanagar Telephone Nigam Ltd. (MTNL) is experiencing financial challenges, which comprise increasing debts and constant losses. To tackle this, the Government of India is thinking of closing down MTNL. Subsequently, MTNL’s operations and staff would be transferred to Bharat Sanchar Nigam Ltd (BSNL).
According to the Livemint report, government officials have expressed that reviving MTNL won’t be feasible. Authority is of the view that merging it with BSNL would lead to extensive financial harm. MTNL bears a burden of about Rs 40,000 crore in debt.
The government is analyzing the decision to de-list MTNL from the stock exchanges. However, they are also not planning to list BSNL even though it is the nation’s fourth-largest telecom, stated reports.
Operations and staff of MTNL can rely on BSNL in carrying forward MTNL’s task force as it has experienced major improvements in recent years.
BSNL is marking its presence on the road to recovery. The telecom is planning to launch 5G services by 2024. They are planning on investing Rs 7,000 crore in bank loans for the same.
The fiscal year 2022-2023 marked BSNL’s revenue to a jump of Rs 20,700 crore. However, it is to be noted that losses have increased to Rs 8,161 crore.
