DoT examining merger of MTNL, ITI with BSNL

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DoT examining merger of MTNL, ITI with BSNL

The Department of Telecommunications is examining the feasibility of merging government telecom companies ITI and MTNL with state-run BSNL.

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The Department of Telecommunications is examining the feasibility of merging government telecom companies ITI and MTNL with state-run BSNL , in line with the recommendations of the Board for Reconstruction of Public Sector Enterprises (BRPSE).

"The recommendations of the BRPSE are examined by a committee constituted by Department of Telecommunications, headed by Member (Services), Telecom," Milind Deora, Minister of State for Communications and Information Technology informed the Lok Sabha today.

The Board for Reconstruction of Public Sector Enterprises had in 2010 recommended the merger of loss-making telecom equipment manufacturing unit ITI and telecom service provider Mahanagar Telecom Nigam Limited with major state-run telecom company Bharat Sanchar Nigam Limited.

While BSNL and MTNL have already started work on synchronising their operations, government approval is still required for the merger.

Both ITI and MTNL are listed on the stock exchanges in India.

Shares of ITI were trading at Rs 25.15, up by 3.29%, while MTNL's scrips were being quoted at Rs 41.10 apiece, up by 3.14%, in afternoon trade on the BSE today.