NEW DELHI: The government has deferred the merger of state-run telecom operators Bharat Sanchar Nigam Limited<\/a> (BSNL<\/a>) and Mahanagar Telephone Nigam Limited<\/a> (MTNL<\/a>) due to financial reasons, IT and telecom minister Ravi Shankar Prasad<\/a> said.
“However, close cooperation and service integration between BSNL<\/a> and MTNL<\/a> has been undertaken,\" said Prasad in a written reply in the Lok Sabha on Wednesday.
This is despite the earnings before interest, tax, depreciation, and amortization (Ebitda) of the two telcos turning positive in the first six months of the current financial year.
The government in 2019 had come up with a four-step revival process for the two ailing telcos worth Rs 69,000 crore, and to help them overcome their long salary dues and meet cash flow requirements.
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