05:49 pm - Sunday 24 September 2017

GoM to meet on May 10 to discuss BSNL and MTNL revival

By insightVAS - Mon May 06, 11:18 am

In a mission to revive both the loss-making public sector telecom companies, BSNL and MTNL, the Group of Ministers (GoM) will hold its first meeting on May 10 to discuss issues.

The meeting is scheduled for May 10. The GoM will decide on the future of BSNL and MTNL. Its recommendations will go to the Cabinet for the final decision,a government official told sources. The GoM is led by Finance Minister P Chidambaram.

Other members of the group are  Telecom Minister Kapil Sibal, Commerce and Industry Minister Anand Sharma, Law Minister Ashwani Kumar, Planning Commission Deputy Chairman Montek Singh Ahluwalia, Information and Broadcasting Minister Manish  Tewari and Minister of State in the Prime Minister’s Office V Narayanasamy.

It was formed after Telecom Minister Kapil Sibal in a letter to Prime Minister Manmohan Singh raised concerns over the future of the two PSUs. According to him, it is due to change in business environment and hyper competition in the telecommunication business, the financial position of BSNL and MTNL had deteriorated in the past three to four years.

Although the results for financial year 2012-13 have not yet been declared, I expect networth of MTNL would have been completely eroded. BSNL is expected to make loss in the range of 10,000 crore in the current financial year,he had said. MTNL losses stood at 4,018.44 crore at the end of financial year 2011-12.

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