No proposal to close MTNL, BSNL; revival plan under preparation, says Ravi Shankar Prasad

The government Wednesday clarified there is no proposal to close state-run BSNL and MTNL, which are facing financial stress due to stiff competition and high employee costs, and added that a comprehensive plan for their revival is under preparation.

"No proposal of closure of Mahanagar Telephone Nigam Limited (MTNL) is under consideration," Telecom Minister Ravi Shankar Prasad informed the Lok Sabha.

In a separate reply, he said there was no such proposal under consideration for BSNL as well.

"Indian Institute of Management, Ahmedabad and M/s Deloitte were engaged to facilitate the preparation of the revival/ restructuring plan of BSNL and MTNL respectively. Pursuant to their recommendations and approval of respective Boards, a comprehensive revival plan for BSNL and MTNL is under preparation," Prasad added.