MTNL rallies for second session on govt reforms

MTNL gained over 4% on Friday, continuing its uptrend for second trading session after a Group of Ministers (GoM) on late-Thursday decided to refund the money paid by the  BSNL and MTNL for surrendering BWA spectrum worth more than Rs 11,000 crore.

The GoM, headed by Finance Minister P Chidambaram, also took a decision on providing pension to MTNL employees, which is likely to cost about Rs 570 crore a year.

MTNL shares surged 19.92% to Rs 15.35 at the close on the BSE yesterday.

Both MTNL and BSNL had requested the government to refund the amount they paid in 2010 for Broadband Wireless Access spectrum, used to provide 4G data services.

MTNL's net loss widened to Rs 5,321.12 crore in the financial year 2012-13 from Rs 4,109.78 crore in FY'12.