NITI Aayog says no proposal for MTNLS’s disinvestment or closure -Governance Now

NITI Aayog says no proposal for MTNLS’s disinvestment or closure

Amitabh Kant has assured that there won't be any unprecedented move against MTNL or its employees

GN Bureau | October 28, 2016

#PMO #Amitabh Kant #MTNL #Niti Aayog #DoT

The government has ruled out the disinvestment plan for state-run Mahanagar Telephone Nigam Limited (MTNL), for the time being. After massive protests by employees' union of MTNL, NITI Aayog has cleared the air, saying that as of now there is no proposal of strategic sale or closure of the government-run telecom firm, according to a news report published in The Pioneer.

After media reports of the MTNL's strategic sale, followed by the government's move for the same in a select few loss-making PSU units, employees of MTNL panicked. They appealed to the prime minister's office (PMO), NITI Aayog, telecom ministry and department of telecommunication (DoT) for its revival.

Niti Aayog Chief Executive Officer (CEO) Amitabh Kant in a letter has assured that there won't be any such unprecedented move against MTNL or its employees, but he had never mentioned any way out or revival mechanism for a long-term sustainability plan of the continuous loss-making firm.

However, according to the news report there is still no clarity on the fate of MTNL as the proposal of disinvestment or strategic sale of MTNL is still pending in the PMO for consideration.

The PSU telecom firm, which offers services in Delhi and Mumbai, has been without a full-time CMD since May 30, 2014, when AK Garg retired from the post. However, PK Purwar, director (finance) of MTNL was given additional charge for the post from June 2014. From June 2015 to June 2016, NK Yadav, who is member (services), held the charge. Purwar was again given the additional charge in June 2016, after completion of Yadav's tenure.

For this key post, the government had sought suitable candidates who were required to submit their applications before September 8, 2016. Purwar's name had been recommended for the MTNL's top post by the PESB in November 2013, but the government did not go ahead with the recommendation.

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