MTNL’s merger possible in BSNL, Telecom Department working on proposal

July 30, 2019July 30, 2019

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The Department of Telecommunications is working on the proposal to merge MTNL to BSNL. This information was given by the news agency on Tuesday, sources said. Merger can also be an option under both the companies’ revival plan. The last decision will be taken by the cabinet.

BSNL estimates deficit of Rs 14,202 crore in 2018-19

Both government companies are struggling with financial crisis. In the last few months, there were problems in providing staff salaries. MTNL offers telephone services in Delhi and Mumbai. BSNL’s service is in the rest of the circle.
BSNL has been in losses for many years. There is estimated loss of Rs 14,202 crore in 2018-19. There was a loss of Rs 7,993 crore in 2017-18. There was a loss of 4,793 crore in 2016-17 and Rs 4,859 in 2015-16.
The number of employees of BSNL is 1 lakh 65 thousand 179. 75% of the company’s total income goes into the expenditure of employees. By March 31, the number of MTNL employees was 21,679. Last month, Telecom Minister Ravi Shankar Prasad had said in the Lok Sabha that there is no plan to shut down BSNL and MTNL but it is preparing to salvage him.