Current Affairs

BSNL, MTNL to be Merged

Current context: The government has approved the merger of loss-making PSUs BSNL (Bharat Sanchar Nigam Limited) and MTNL (Mahanagar Telephone Nigam Limited) to revive their growth.
BSNL, MTNL to be Merged 
  • As per the merger, MTNL will act as a subsidiary of BSNL (both together holds 14% market share in mobile business in India).
  • The revival package of Rs 70,000 crore includes raising sovereign bonds, monetising assets and voluntary retirement scheme (VRS) for employees.
  • The government will also put Rs 29,937 crore to the telecom companies and will raise Rs 15,000 crore through Sovereign Bonds.
  • The government will also allocate 4G spectrum to BSNL and MTNL and will allocated at 2016 price.
  • BSNL had an estimated loss of Rs 13,804 crore in 2018-19 and MTNL losses pegged to Rs 3,400 crore in 2018-19.

Question: 

Q.1 The government has recently approved the merger of which two telecom companies?
a. BSNL and Airtel
b. MTNL and Jio
c. BSNL and MTNL
d. MTNL and Jio
BSNL, MTNL to be Merged BSNL, MTNL to be Merged Reviewed by Neha Verma on October 24, 2019 Rating: 5

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