NEW DELHI: State-owned telecom service provider Bharat Sanchar Nigam Limited (BSNL) is planning to rope in IIM-Ahmedabad and Deloitte to help it attain better financial health and formulate a merger plan with MTNL.
As per officials familiar with the development, these agencies will help the telco to be profitable and resolve any legal issues associated with the merger with MTNL.
“There are many legal and technical issues involved in the merger, therefore, BSNL has sought assistance from private entities. The telco believes once these agencies come on board, the long-pending merger plan can be achieved,” said a senior government official. MTNL, in an exchange listing on Friday, announced the signing of a Memorandum of Understanding (MoU) with BSNL.
As per MTNL, the MoU will pave the way for synergy of operations between the two companies. “The MoU will establish a broad framework for implementing decisions made by the Union Cabinet on August 27, 2022,” said the company in an exchange filing.
The government has been making efforts to revive BSNL by infusing capital. Since 2019, the government has announced three relief packages for the company. The first package of Rs 69,000 crore was approved in 2019. In another package in 2022, the government approved Rs 1.64-lakh crore to provide financial support for capital expenditure, viability gap funding for rural landlines, financial support to alleviate balance sheet stress, settlement of adjusted gross revenue (AGR) dues, and the merger of BBNL with BSNL.