You are here: Home » Technology » News » Apps
Business Standard

Sell-off in BSNL likely soon: Sam Pitroda

Press Trust Of India  |  New Delhi 

The Prime Minister’s information advisor Sam Pitroda said the government was not planning to merge BSNL and MTNL, but efforts were on to sell stake in BSNL.

“There is no move to merge BSNL and MTNL,” he told reporters here today. He, however, added the government was considering selling a part of its stake in BSNL and would move “quickly” in that direction. A high-level review meeting chaired by Prime Minister Manmohan Singh earlier this week had agreed to consider a suggestion for immediate sale of 10 per cent government equity in BSNL. Pitroda, who is also co-ordinating the release of spectrum by the defence forces for the upcoming 3G auction, is learnt to have called for an immediate disinvestment of 10 per cent of the government’s equity in BSNL, a proposal expected to be considered at the top level of the government soon.

The review assumes importance in the wake of deteriorating revenues of the PSUs, particularly BSNL, which also faces a controversy over a Rs 35,000-crore expansion plan.

Pitroda said there was no plan to come out with a follow-on public offer of MTNL. The government had earlier contemplated a merger of BSNL with MTNL to help synergise operations of both the state-owned telcos.

DoT and boards of both companies had discussed the issue many times, but never came to a conclusion due to various issues .

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

First Published: Sat, January 09 2010. 00:34 IST