BSNL-MTNL are going to merge

The merger talks between Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd could be back on the menu. The two PSUs discussed the issue at a meeting with the Prime Minister on Wednesday as part of a plan to revive the company's profitability.

The two telecom companies have been exploring possibility of a merger for the past two years, but issues related to management, employee compensation and holding structure had put the deal on a backburner.

Pressure to perform

But now with both BSNL and MTNL losing their market share to private players, there is pressure on them to perform. While BSNL does not have access to most lucrative markets of Delhi and Mumbai, MTNL does not have presence in other parts of the country. Synergising their operations could put them in a better position to take on the intense competition in the mobile segment.

In a bid to get BSNL to work more efficiently, the Government is also looking to get the company listed on the stock exchanges. Though the Government had given its nod for the Initial Public Offering (IPO) over a year back, the employees union are against the proposal. The BSNL management has been asked to negotiate with the employees union and move ahead on the plan.

Use 3G spectrum windfall to control fuel prices:Navjot Sidhu

BJP General Secretary Navjot Singh Sidhu suggested that the income earned from auction of 3G spectrum should be utilised to control the rising petroleum product prices.

Addressing a press conference at the party office here, Sidhu noted that the BJP has called for a ‘Bharat Bandh’ on July 5 as part of its protest against price rise.

He said the government has earned Rs. one lakh crore in the 3G spectrum auction. “It is a windfall for the government and this should be used to control the rising petroleum product prices,” he said.

Sidhu said income from the spectrum allocation has not been taken into account in the budget and demanded it should used for the common man to bring down the prices.

“80 per cent of the budget was spent on the corporate sector by giving a concession of Rs 5.20 lakh crore to the one per cent rich corporates while social schemes were given only Rs 1.70 lakh crore.

“I am not against rich people but a balance has to be maintained in the budget,” he said.

Senior leader Kirit Somaiya, who was also present at the press conference, said inflation never crossed 4 to 5 per cent and food inflation was 2 per cent during the NDA regime. .

“Today, inflation is 11 per cent and food inflation 20 per cent,” he said.

Sidhu said petrol prices have gone up by 26 per cent in one year while diesel prices increased by 30 per cent. “Such things happen only in war situation. But even in 1963 and 1971, the inflation was less than 7 per cent,” he claimed.

He alleged that the price hike is “manipulated“.

When asked who is to blame for price rise, Sidhu said it was the collective responsibility of the government. “You cannot blame a single person. Since the Prime Minister is the head of the government, he is accountable,” he added.