BSNL-MTNL merger: EoIs by October 15

The department of telecommunications (DoT) has set October 15 as the last date for receiving the expressions of intent (EoI) from merchant b...

The department of telecommunications (DoT) has set October 15 as the last date for receiving the expressions of intent (EoI) from merchant bankers on working out possible synergies between Bharat Sanchar Nigam Limited and Mahanagar Telephone Nigam Limited.

‘‘The process of combining the synergies of the two PSUs would take around a year from now.

After receiving EoIs, we will look at presentations from various bankers and pick up one consultant,’’ a government official said.

Story continues below this ad

One of the stumbling blocks in combining the synergies of the two PSUs is the disparity in the salaries between BSNL and MTNL employees.

According to a government official, the differences in the salaries of the employees of the two PSUs could range anywhere between 5 per cent and 15 per cent. ‘‘This is another reason why we sought the help of merchant bankers as combining the synergies of the two PSUs would also include equalising the compensation packages for the employees of the two companies,’’ the official said.

That MTNL is listed and BSNL is not could be another area of trouble.

There are around 13 merchant bankers who have shown interest.

Meanwhile BSNL top officials had suggested that if even the two companies are not merged, BSNL should be allowed to take up a separate licence for Delhi and Mumbai.

Trump and Netanyahu at the White House: 20 point peace plan for Gaza

Why Donald Trump’s new Gaza ‘peace plan’ differs from earlier attempts, challenges ahead

Explained2 hr ago

Trump's new plan for peace in Gaza allows Palestinians to stay and rebuild, offers a path to statehood, and is backed by Arab and Muslim leaders. It aims for an immediate end to the war and includes a "board of peace" led by Trump, but its success depends on cooperation from all parties involved.

View all shorts

Live Blog

PHOTOS