Government Clarifies No Plans to Privatize BSNL and MTNL

The government ruled out privatization of telecom companies Bharat Sanchar Nigam Ltd. and Mahanagar Telephone Nigam Ltd., said Pemmasani Chandra Sekhar, Minister of State for Rural Development and Communications on Wednesday. In February, the Union Cabinet has reportedly approved Rs. 6000 crore for 4G network advancement of BSNL and MTNL.

According to a report, in January the government decided to give up on its determined privatization plans for various states-owned firms, which also included MTNL.

In the previous month, a financial package of around 6000 crore was sanctioned by the Union Cabinet to boost the advancement in 4G network of both, Bharat Sanchar Nigam Ltd. and Mahanagar Telephone Nigam Ltd. This funding will support the state-run telecom providers strengthen and improve their network Infrastructure. As per the plan, 1,00,000 new 4G sites will be established to improve connectivity and service quality for consumers.

An additional amount of Rs. 6000 crore will be required to accomplish the expansion. The government has so far extended the monetary support of Rs. 3.22 trillion to BSNL and MTNL for recovery package. In addition, BSNL and MTNL had agreed upon a 10 year agreement for 4G network sharing, focused at maximizing resource and advancing service delivery.