BSNL to rope in IIM-A, Deloitte to formulate merger plan with MTNL: Report

State-run telecom operator Bharat Sanchar Nigam Limited (BSNL) is planning to rope in IIM-Ahmedabad and consultancy and advisory firm Deloitte to chart out a plan for bettering its financial health and also formulate a merger plan with Mahanagar Telephone Nigam Limited (MTNL), The New Indian Express reported Wednesday citing officials familiar with the matter.

The report said that the organisations will help BSNL attain profitability and resolve legal issues associated with the merger with MTNL.

“There are many legal and technical issues involved in the merger, therefore, BSNL has sought assistance from private entities. The telco believes once these agencies come on board, the long-pending merger plan can be achieved,” a senior government official was quoted as saying in the report.

The development comes close on the heels of MTNL signing a Memorandum of Understanding (MoU) with BSNL to achieve synergy of operations.

“The MoU with BSNL will pave the way for synergy of operations between MTNL and BSNL in order to provide pan India telecom services as a public sector enterprise under the government of India,” MTNL said in a regulatory filing recently.

The Centre, on its part, has been infusing cash into the struggling telcos to help them revive and compete better against the private companies. In 2019, the government approved the first revival package for BSNL with an outlay of Rs 69,000 crore, followed by a second package worth Rs 1.64 lakh crore in July 2022. This year in June, another revival package of Rs 89,047 crore for BSNL was approved which includes allotment of 4G-5G spectrum for BSNL through equity infusion.