A sub-optimal solution

BSNL-BBNL merger will not help

The proposed merger of Bharat Broadband Network Ltd (BBNL) with Bharat Sanchar Nigam Ltd (BSNL) is nothing but a lifeline for loss-making public sector undertakings (PSUs). BSNL Chairman and Managing Director P K Purwar’s statement that the government had given a turnaround opportunity to the state-owned telco through the merger confirms that. The Union government is expected to loosen the purse strings to ensure there is no capex crunch for BSNL at least for two years as the state-owned telco leads the amalgamated entity. While the government action may be guided by the right intention of reviving loss-making telecom PSUs,