The MTNL board has approved a service agreement with BSNL for a period of ten years, and also a slew of other proposals, including share-sale in the overseas subsidiary Mahanagar Telephone (Mauritius). The board, during its meeting, has also approved the sale of shares of MTNL in MTNL STPI IT Services Ltd or MSITS, according to a regulatory filing by MTNL. 

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The board "accorded its approval to enter into a service agreement between BSNL and MTNL for a period of 10 years or unless it is revoked earlier by giving a notice of six months or extended by mutual consent between the parties, subject to approval of the said service agreement by Department of Telecom / Ministry of Company Affairs," it said.

It has also approved a proposal related to the sale of shares of MTNL in Mahanagar Telephone (Mauritius) Ltd or MTML - an overseas wholly-owned subsidiary - in line with applicable Department of Investment and Public Asset Management (DIPAM) guidelines and other regulatory processes.

The board has also cleared a proposal for the closure of Millennium Telecom Limited (MTL), a wholly-owned subsidiary of MTNL. This will be done in line with applicable DIPAM guidelines and other stipulated processes