Kapil Sibal urges PM to form panel to revive BSNL and MTNL

Communications and information technology minister Kapil Sibal has sought the intervention of Prime Minister Manmohan Singh to chalk out a revival strategy for the loss-making state-run telecom operators Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL). 

In a recent communication to the prime minister, Sibal said suggestions and interventions of different ministries would be required to consider possible options to revive BSNL and MTNL. He also suggested a group of ministers be formed to look into the issue. 

According to minister due to change in the business environment and hyper competition in the telecom space, financial conditions of both companies have deteriorated in the past three to four years. MTNL, which operates in Delhi and Mumbai, has been reporting losses since 2009. This disqualifies it from being a Navratna company. Making losses for two consecutive years disrobes an entity of the Navratna status. MTNL had posted a loss of Rs 2,611 crore in 2009-10 and Rs 2,802 crore in 2010-11.

Source: http://cablequest.org/news/technology-news/item/2105-kapil-sibal-urges-pm-to-form-panel-to-revive-bsnl-and-mtnl.htmlSource: http://cablequest.org/news/technology-news/item/2105-kapil-sibal-urges-pm-to-form-panel-to-revive-bsnl-and-mtnl.html