-
ALSO READ
MTNL spurts on buzz of likely revival of telecom PSUs
DoT asks BSNL, MTNL to recall staff working in its offices without sanction
BSNL, MTNL to merge under Rs 69,000 cr revival plan; 4G spectrum, VRS part of scheme
BSNL, MTNL to be merged
DoT working on proposal for MTNL, BSNL merger; final call by Cabinet: Source
-
Shares of MTNL gained 5 per cent to its highest trading permissible limit for the day after the announcement of a Rs 69,000-crore revival package for the company and BSNL, that includes merging the two loss-making firms.
MTNL's scrip jumped 4.92 per cent to Rs 6.19 -- its upper circuit limit on the BSE.
On the NSE, it rose 4.27 per cent to its highest trading permissible limit for the day at Rs 6.10.
The government on Wednesday approved a Rs 69,000-crore revival package for BSNL and MTNL that includes merging the two loss-making firms, monetising their assets and giving voluntary retirement scheme (VRS) to employees so that the combined entity turns profitable in two years.
The cabinet approved a plan to combine Mahanagar Telephone Nigam Ltd - which provides services in Mumbai and New Delhi - with Bharat Sanchar Nigam Ltd that services the rest of the nation, Telecom Minister Ravi Shankar Prasad said.
MTNL has reported losses in nine of the past 10 years and BSNL too has been ringing in loss since 2010.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU