MTNL News : Bharat Sanchar Nigam Limited and Mahanagar Telephone Nigam Limited have entered into a significant strategic partnership for a duration of ten years, aimed at enhancing the telecommunications sector in India, particularly in major urban areas like Delhi and Mumbai. This collaboration is particularly crucial for MTNL, which has recently reported a substantial debt of Rs 31,994.51 crore alongside facing various operational challenges.
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The agreement received approval during a recent board meeting of MTNL, where additional related matters were also sanctioned, including the sale of shares in its overseas subsidiary, Mahanagar Telephone (Mauritius), and the closure of Millennium Telecom Ltd., a wholly-owned subsidiary of MTNL.
Renewal of the agreement is contingent upon obtaining prior written consent from both parties and the Department of Telecommunications (DoT) or the Ministry of Corporate Affairs. Furthermore, either party may terminate the agreement with a written notice of six months. At present, the agreement is suspended while the DoT assesses the potential tax ramifications and the total expenses involved. The government is being prudent to prevent additional liabilities from being placed on BSNL or MTNL, especially as BSNL is currently handling sovereign bonds.
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