The Indian government has said that the mergers of BBNL, implementing the BharatNet broadband project, with telco BSNL is under consideration, while the mergers of the two State-controlled telecom service providers, BSNL and MTNL has been greenlit, but deferred owing to financial reasons.

“A proposal for merger of Bharat Broadband Network Limited (BBNL) and Bharat Sanchar Nigam Limited (BSNL) is under examination,” junior Minister for Communications Devusinh Chauhan said in Lok Sabha (Lower House of parliament) on April 6, adding that it was part of a revival plan for the State-run telco approved by the government.

Chauhan was replying to a query on the revival plans for the financially-stretched BSNL and whether there was any proposal to merge BBNL and BSNL to consolidate telecom operations of the government.

To another part of the query on the merger of the two government-run telcos, the Communications Minister said a revival plan for BSNL and Mahanagar Telephone Nigam Limited (MTNL) was approved in October 2019, which “inter-alia includes in-principle approval for merger of MTNL and BSNL”.

He added: “Due to financial reasons, including high debt of MTNL, the merger of MTNL with BSNL is deferred.”

To another query from a fellow parliamentarian on a similar subject of MTNL and BSNL and whether the government had plans to “monetize MTNL properties to generate funds” to bail it out, Chauhand answered in the affirmative.

“For monetization of Land/Building assets of MTNL, Department of Investment and Public Asset Management approved monetization of 06 assets of MTNL (tentative value Rs. 5,158 crore) in phase-1 for which International Property Consultants have been appointed. Out of these properties, 2 properties (reserved price of Rs 290 crore) have been taken for e-auction,” the Minister elaborated.

Incidentally, the Indian government has 35.8 percent stake in private sector telco and the Indian joint venture of British telecom giant Vodafone, VodafoneIdea, which came the government’s way sometime back as the telco took up an amnesty offer to convert its outstanding dues to the government into equity stake.

The Indian government at various times has insisted it does not intend to play an active role in day to day running of VodafoneIdea, leaving it to the professionals to run the company.