Delhi and Mumbai service provider Mahanagar Telephone Nigam Limited (MTNL), in a press release, made several announcements after a board meeting was held on Wednesday. These announcements included agreements and approvals of proposed sales.
MTNL entered a service agreement with BSNL for a 10-year period. The agreement can be revoked by mutual consent of the two parties by giving a six-month notice.
MTNL also announced approval for the closure of Millennium Telecom Limited (MTL), a wholly-owned subsidiary of MTNL. The procedure will comply with applicable DIPAM guidelines and will follow the process as per SEBI/ Company laws.
The company further approved the proposed sale of shares of MTNL in MTNL STPI IT Services Ltd (MSITS) under intimation to STPI. This will be done by complying with the provisions of the JV Agreement with STPI, complying with the applicable DIPAM Guidelines, and all other processes as per SEBI/Company laws. It will offer the same to any other PSU or State Government.
Additionally, it approved the proposal to sell shares of MTNL in Mahanagar Telephone (Mauritius) Ltd (MTML), an overseas wholly owned subsidiary of MTNL, by complying with the applicable DIPAM Guidelines and all other processes as per SEBI/RBI/Company laws. It will also follow extant Mauritian laws.
