BSNL, MTNL latest news: Big announcement! Government rules out disinvestment

BSNL, MTNL latest news: The Narendra Modi Government on Thursday ruled out any plans to sell stake or disinvestment of loss-making telecom PSUs — BSNL (Bharat Sanchar Nigam Limited) and MTNL (Mahanagar Telephone Nigam Limited). Union Telecom Minister Ravi Shankar Prasad made this announcement in the Parliament while fixing a target of Rs 200 crore and Rs 300 crore for them from asset monetisation in current fiscal.

In a written reply to a question in the Upper House today Ravishankar Prasad, Union Telecom Minister, Government of India said, "While the specific assets to be monetised during the current fiscal year have yet not been identified, the target for asset monetisation during the current fiscal year for BSNL and MTNL is Rs 200 crore and Rs 300 crore respectively," adding, "(There is) no proposal for disinvestment of BSNL and MTNL is under consideration."

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Ravi Shankar Prasad went on to add that MTNL operates in the metros of Delhi and Mumbai while BSNL operates in the rest of India. The Cabinet has approved the revival plan for BSNL and MTNL which inter-alia, includes in-principle approval for the merger of BSNL and MTNL. The merger will benefit BSNL/MTNL through pan-India footprint, synergy in operations, reduced fixed costs and overheads, sharing of technical infrastructure and enhanced Enterprise Business.

State-run BSNL`s losses for the year 2018-19 has doubled to nearly Rs 15,000 crore from 2017-18 and revenue has also dwindled to Rs 19,321 crore in fiscal 2019.

As per the figures are given by Telecom Minister in the Rajya Sabha, in 2018-19 BSNL posted a loss of Rs 14,903 crore and the loss was Rs 7,993 crore in 2017-18 and Rs 4,793 crore in 2016-17. MTNL posted a loss of Rs 3,398 crore in 2018-19, Rs 2,971 crore in 2017-18 and Rs 2016-17 as well.

The revenue of BSNL in 2017-18 was Rs 25,071 crore and Rs 31,533 crore in 2016-17. MTNL's revenue was Rs 3,552 crore in 2016-17, Rs 3,116 crore in 2017-18 and Rs 2,607 crore in 2018-19. (With inputs from IANS)