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State-run telecom firm MTNL today said there are no plans to delist the company from the stock exchanges.
In a notice to the Bombay Stock Exchange, the company said, "As far as MTNL is concerned no such proposal (of delisting) has been under consideration of the board."
The MTNL stock was up 19.88% and closed at Rs 19.90 at the BSE today.
The department of telecommunications (DoT) secretary Rakesh Garg said a decision on BSNL, MTNL merger will be taken after studying the Indian Institute of Management (IIM) committee report, which is likely to be submitted shortly.
DoT had asked IIM Bangalore to prepare a feasibility report on merger of state-run BSNL and MTNL. Garg said DoT will take 4-5 months to study the report and then take a call on the merger.
In a bid to revive BSNL and MTNL, DoT is taking various initiatives as both the state-run companies have been making losses and losing market share to private telecom operators. It includes treatment of pensionary liabilities of government employees absorbed in MTNL who opted for combined service pension on parity with similar employees in BSNL, waiver of government loan to BSNL involving an amount of Rs 1,411 crore and financial support of Rs 492 crore to MTNL towards payment of minimum alternate tax.
BSNL had incurred Rs 7,019 crore loss in 2013-14, Rs 7,884 crore in 2012-13 and Rs 8,850 crore in 2011-12, whereas MTNL had reported a loss of Rs 5,322 crore in 2012-13 and Rs 4,109 crore in 2011-12.
