The government on Friday said the revival of state-owned MTNL is tough but not impossible even as it assured to provide all possible help to resurrect the loss-making telecom firm. "Revival of MTNL is tough but not impossible. Government will provide all possible support for its revival," Telecom Minister Ravi Shankar Prasad said at a convention organised by MTNL Mazdoor Sangh on the revival of the public-sector firm.
The minister also cited the turnaround at another state-run telecom firm BSNL, which posted an operating profit after many years.
Mahanagar Telephone Nigam Ltd (MTNL) posted a net loss of Rs 704.93 crore in third quarter ended December 31, 2015 while its total income during the quarter stood at about Rs 770 crore. The government this month provided a refund of Rs 492.26 crore to MTNL on account of liability arising out of levy of Minimum Alternate Tax (MAT) towards its financial support.
MTNL Mazdoor Sangh handed over a memorandum to the minister over a report of IIM-Bengaluru that examined financial situation of the company and suggested measures for revival. The IIM-Bengaluru report has suggested that MTNL will not be in a position to continue the business beyond one or two years without government support.
The report has examined five options for MTNL's revival: raising equity from the market, merger with BSNL, sale of mobile division along with licence and all related assets, surrendering 2G and 3G spectrum to government and the strategic sale by way of transferring 51 per cent or more stake to a private entity.
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