Tag Archives: BSNL – MTNL – Merger

No proposal for merger of BSNL and MTNL – Communications Minister

07 Saturday Apr 2018

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Shri Manoj Sinha, Communications Minister in reply to a question in Parliament stated on 6th April 2018 that
‘At present, there is no proposal for merger of Bharat Sanchar Nigam Limited (BSNL) and
Mahanagar Telephone Nigam Limited (MTNL)’.

The proposal was there earlier, but the government was compelled to shelve it since the unions took a strong stand that before merger, that the huge loss of MTNL should be written off and that the more than 46% share sold by MTNL should be bought back. If that is accepted by the government, both BSNL and MTNL will be benfitted. The government does not want to accept the unions’ proposal, since it will strengthen both BSNL and MTNL, which it does not want.

Failing the merger proposal, Government is on the move to divide BSNL by bifurcating Tower business, to destroy BSNL. The entire unions are against the formation of a separate company. They are on struggle against formation of Tower Company since it is the end of BSNL. Through sustained struggles, Unions are on the move to defeat the bifurcation proposal of the government.

Privatisation / closure of BSNL is not only against the interest of the workers, but also against the best interests of the more than 110 crore mobile/ telephone subscribers. The tariffs of the private companies are less, only because BSNL/MTNL are there. Once they are finished, the tariffs will go high as much as twenty times, as in international level. Hence as long as BSNL exists, it is beneficial for the entire country. Once it is not there, subscribers will be at the mercy of the corporates, as is the case with the diesel and petrol prices now. The prices will go far beyond the international prices to recover the present losses to the telecom companies. It is the responsibility of the workers that this truth is communicated to the people.

BSNL – MTNL Merger

17 Friday Mar 2017

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The Parliamentary Committee on Petitions headed by BJP MP Bhagat Singh Koshiani has recommended for Merger of BSNL and MTNL. It has also recommended for appointment of an Expert Committee to examine the matter.

Again and again the issue of merger of BSNL and MTNL is being raised. The Forum of BSNL Unions and Associations of Non-Executives and Executives had made its stand clear. The merger can be effected, provided that the huge liabilities of MTNL is made good by the government, the disinvested shares of MTNL are bought back and the pay scales of both BSNL and MTNL are made equal.

The Petitions Committee and the Expert Committee, when appointed should consider merger on this basis. The merger should be for the benefit of both and not for disaster.

 

BSNL and MTNL Merger again in the Government agenda

09 Thursday Mar 2017

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It is reported in the press that the Merger of BSNL and MTNL is again in the agenda of  the government.

The Forum of BSNL Unions and Associations had demanded earlier that if the merger is to be implemented, the following conditions should be fulfilled:

  1. The debt of MTNL should be written off, so that the debt will not be with the merged corporation.
  2. The disinvested shares should be bought back so that MTNL is fully owned by the government as in the case of BSNL.
  3. The difference in the payscales should be removed.

Government should seriously think over and implement these favourable suggestions. It was not the workers who divided Telecom services in to BSNL and MTNL, but it was the government. As such, the government should take necessary actions to accept these demands before moving for merger.

 

BSNL-MTNL Merger in the agenda of the Government

06 Friday Nov 2015

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It has started again. Reports are appearing again about the Merger of BSNL and MTNL. It seems that the government is continuing its pressure for the same. An extract of the latest report in the ‘Business Standard’ is given below:

“The department of telecommunications (DoT) is actively considering setting up a holding company, with state-run telecom companies Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) as its subsidiaries. The move is expected to revive the ailing public sector undertaking companies, by synergising their operations.

This is one option recommended by IIM-Bangalore in a report on measures for reviving the firms, according to a senior official from the department. The others include delisting MTNL and then merging it with BSNL, and MTNL becoming a subsidiary of BSNL.”

The Forum of BSNL Unions/Associations had told the management/DOT many times that merger without settling the three core issues raised by them will not be accepted. On the opposition from the unions, the proposal was shelved for the time being. Now again, the proposal is in the urgent agenda of the government. Forum can not be a silent spectator.

Communications Ministry prepares draft on BSNL-MTNL Merger

28 Saturday Jun 2014

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A report published on the merger of BSNL and MTNL is reproduced below.This deserves serious attention of the Forum of BSNL Unions and Associations and its affiliates:

“The communications ministry has prepared the draft for a note seeking the merger of ailing public sector telecom companies — Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL), sources in the department of telecommunications said. The draft has been sent to communications minister Ravi Shankar Prasad for his approval.

The draft was prepared in the light of weak finances in the two fallen monopolies, sources added. Unaudited financial results for the financial year 2013-2014 indicate that BSNL and MTNL are estimated to report a net loss of ` 7,084 crore and ` 1,908 crore, respectively.

Different groups have already been formed to study various aspects such as human resources, technological systems, financial and corporate integration between both firms. “A steering committee has also been constituted for the coordination of these groups,” a DoT source said.

The draft also mentions the operational level synergy between MTNL and BSNL. It suggests the creation of a separate company for the telecommunications infrastructure and has strongly suggested monetisation of the land assets possessed by both the public sector telecom companies.

“We have proposed hiving of mobile tower assets of BSNL into a separate company…a 100% subsidiary with outsourcing of operation and maintenance sales and marketing functions,” the source added.

Once the draft is examined by the communications minister, the proposal is likely to be forwarded to the law ministry, before being sent to the Cabinet for final approval.(Courtesy: Hindustan Times)

Forum Meets on 3 March on BSNL-MTNL Merger issue

02 Sunday Mar 2014

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The Forum of BSNL Unions/Associations will meet on 3 March 2014 to chalk out future programme of action protesting proposal for BSNL-MTNL merger, without first settling the HR, Wage, disinvestment issues etc. The Revival of BSNL and our task in the matter will also be discussed as usual.
The BSNL Management has proposed VRS, formation of a tower company etc, which are not in the best interests of the company and workers.These also will be discussed.

Merger of BSNL and MTNL – Is there any possibility?

08 Monday Oct 2012

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The question of merger of the two telecom PSUs, BSNL and MTNL, is coming up now and then. Is it possible? What are the real issues?

MTNL was formed on 1st April 1986 as a wholly government company under Department of Telecommunications (DOT),  to provide telecom services, except telegraphs,  in the metros of Delhi and Mumbai. BSNL was formed on 1st October 2000 as government company as MTNL, but to provide telecom services all over India except in the above two metro cities and the telegraphs including in the metros.

What was the necessity to break the DOT services in to two corporations, instead of continuing as a government department which was well appreciated as an efficient and reliable service?

The government has adopted the neo-liberalisation process since the 1990s. Instead of strengthening the Public Sectors which were called as ‘Temples of modern India’ by the first Prime Minister Pandit Jawaharlal Nehru, the present ruling classes wanted to disinvest and sell the PSUs at cheap prices to the corporates. Their slogan was, ‘Business is not the business of the government’. It is not easy to privatise the government department directly and hence corporatisation, which is considered as the first step towards privatisation. How another corporation formed from DOT vis. Videsh Sanchar Nigam Limited (VSNL) was sold to the Tatas is well known.  In the same way, the government wants to privatise both MTNL and BSNL. MTNL is already disinvested to the extent of 45%, but due to strong resistance from the unions, no disinvestment has taken place in BSNL.

Both the PSUs were  in profit earlier, but is in loss at present due to the pro-private, anti-PSU policy of the government. DOT services should not have been corporatized and at least not bifurcated in to MTNL and BSNL.

Interestingly, years after formation of these two companies, some proposals from the government had come for merger of the two. The employees are in support. Merger will help synergy and benefit the operations on an all India basis.

But there are two issues to be sorted out. One is about wages, perks, promotion, seniority, pension etc. These are different in these two companies. How it can be solved? We have the tragic experience of the merger of Air India and Indian Airlines which has resulted in much heartburning and agitations due to the injustice meted out to one or other section after merger. There are about 2.74 lakh workers in BSNL and about 35,000 in MTNL. These  issues have to be sorted out before merger.

Another issue is that MTNL is disinvested and BSNL is not. How this issue can dealt with on merger. One way is to buy back the shares sold by MTNL and then merge. But this is almost an impossibility with the privatisation policy of the government.

Under the circumstances, the chance for any merger between the two telecom PSUs is dim. But another decision can be taken by the government. BSNL can be allowed to provide services in Mumbai and Delhi and in the same way MTNL allowed to function outside Delhi and Mumbai . The Oil PSUs are not restricted to any areas, but is on all India basis. Why that position can’t be introduced in telecom also. That will benefit both the companies.