MTNL seeks more power to fix tariff

Speaking to The Indian Express, MTNL Chairman and Managing Director Rajagopalan stated that the corporation is not yet defined clearly as a PSU and hence is completely ruled by the DoT for most of its decision-making. He said that so far MTNL has been viewed as an appendage of the DoT.

Rajagopalan outlined the four areas over which the MTNL would require to have greater control in order to fetch a better price for its GDR issue. These, he said, included material, minutes, manpower and money. The first two are now under control of the MTNL with the DoT giving it autonomy for purchases of equipment based on its requirements only last week. It is more control over manpower and money.

Facing the threat from private sector oprators, MTNL has demanded a greater level of flexibility in fixation of tariffs to its subscribers "subject to an upper ceiling", said Rajagopalan.

These demands have been made by MTNL in the light of plans to raise money from the global market through a GDR issue by September or October later this year. The size of the issue is currently being contemplated at several levels in the government. A task force has been set up to decide the modalities of the GDR issue.