The DOT has put in a proposal for the merger of telecom PSUs BSNL and MTNL. In a note prepared by the Department of Telecom, it is stated that ‘ to synergise the operations of both the companies’ merger is necessary. It has also stated that there should be a restructure plan for both the companies.

The earlier proposal for merger was shelved at the time of the former minister A.Raja. After taking over the minisry by Kapil Sibal, the proposal has again been brought in to the picture. BSNL has earlied proposed to extend its services to Delhi and Mumbai, but it was rejected by the DOT. In the same way the proposal of MTNL to extend its services to Maharashtra was also rejected.

If both the PSUs were allowed to have pan India service, it would have been beneficial for the PSUs. But in order to help the private telcos, this was not done.

We have to see what are the details of the proposal.