The Department of Telecommunications (DoT) is reportedly working on a proposal for merger of cash-strapped BSNL and MTNL, as part of efforts to revive the ailing state-owned telecom firms. Merger is one of the many components of the overall revival plan being worked out for the two corporations and that a final call on the matter will be taken by the Cabinet.
MTNL was set up by the Government of India to upgrade the quality of telecom services, expand the telecom network, and introduce new services and to raise revenue for telecom development needs of India's key metros -- Delhi and Mumbai.