Govt may not merge MTNL and BSNL: A Raja

Telecommunications and IT Minister A. Raja ruled out a merger of Bharat Sanchar Nigam Ltd. (BSNL) and Mahanagar Telephone Nigam Ltd. (MTNL), saying that there are a lot of legal hurdles against the proposed move. Publicly listed MTNL provides telecom services in New Delhi and Mumbai, while BSNL serves the rest of India. Raja said that the Government would consider the listing of BSNL as proposed by the state-run company's Board. He however said that the company's union will also be involved in talks for the same. Estimates suggest that BSNL is worth US$100bn and dilution of 10% stake would help the company raise US$10bn. Raja also said that he would push for an extension of tax sops under Sections 10(A) and 10(B) of the of the Software Technology Parks of India Act for at least another two years. The sops, which were due to lapse in the current financial year, have already been extended by one year.