The Union Cabinet extended the procurement quota of government-owned telephone equipment maker ITI Ltd for procurements made by the public sector companies of BSNL, MTNL and Bharat Broadband Network Ltd (BBNL) for three years.
As part of the ongoing revival talks, telecom department has asked the ailing MTNL to outline a long-term roadmap on how the PSU plans to compete with other players that have a pan-India footprint, the operator's chairman said.
State-run telecom firm MTNL on Friday said its shareholders have approved proposals to raise authorised share capital by over 12 times to Rs 10,000 crore and borrowing limit by around 38 percent to Rs 25,000 crore.
ITI Limited has filed draft papers with capital markets regulator Sebi to float a follow-on public offer (FPO), a move that will help the telecom PSU meet the minimum 25 per cent public shareholding norm.
The Department of Telecom plans to seek the Cabinet's approval in the next two months for the allocation of spectrum to state-run telecom firms BSNL and MTNL for 4G services, an official source said.
Mahanagar Telephone Nigam Ltd (MTNL) reported widening of losses for the quarter ended June 30, 2018 to Rs 943.3 crore.
BSNL has narrowed its loss to Rs 4,785 crore during 2017-18, even as its income declined to Rs 27,818 crore as against the previous fiscal, Parliament was informed.
Sinha said there is no proposal to merge state-run telecom companies Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL).
BSNL, Air India and MTNL incurred 55.66% of the total losses suffered by the top ten loss-making CPSEs in 2016-17.
Manoj Sinha said there are no plans at present to merge BSNL and MTNL, but asserted that strategic plan outlined for promoting synergy among state-owned telecom firms.