After numerous ineffective attempts over the last 15 years, the government is again bidding on a merger between state-owned Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL). According to the media report, it has selected audit and consulting firm Deloitte as the transaction advisor. The transaction consultant is predicted to defer to its meticulous merger analysis in the next six to seven months, sources mentioned.

According to the blueprint, it will take about two years to thorough the process because of the complexity tangled. The merger impetus is being given again because it’s part of the Rs 1.64 trillion renewal package by the government’s approval last year for the ailing BSNL and MTNL. In the Cabinet note, the government said it would form a committee of secretaries from different ministries to choose the two companies’ merger.

Last week, telecom secretary K Rajaraman inveterate that the transaction advisor had been allotted. Preceding the declaration of the Rs 1.64 trillion revival package, the Parliamentary Standing Committee on Communications and Information Technology last year requested the Department of Telecommunications (DoT) to carve out MTNL’s assets and debts over a special purpose vehicle and unite the company’s acts with BSNL.

Due to financial motives, the government had put the BSNL, MTNL merger offer on hold last year. “The government has permitted the revival plan of Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) on 23rd October 2019, which inter-alia comprises in-principle support for MTNL and BSNL merger.