 New
Delhi: Communications
Minister Arun Shourie says he wants to study the proposal
for merging Mahanagar Telephone Nigam (MTNL) and Bharat
Sanchar Nigam (BSNL).
“In
general in India, we’re not able to manage mammoth
organisations,” says Shourie when asked about the
proposed merger of these two telecom giants.
Shares
of MTNL have jumped since a cabinet reshuffle on 29 January
2003 in which Shourie replaced Pramod Mahajan as communications
and information technology minister. Mahajan was seen
as favouring a merger between MTNL and BSNL. Analysts
believe MTNL would be easier to privatise if the telecom
giants are not merged.
Shourie
says he needs time to study whether there would be any
sales of stakes in MTNL and BSNL. He hasn’t fixed
any timeframe for reaching a conclusion. “I have
asked both for details about their market share and their
competitiveness. I have also requested them to inform
me about the handicaps they are facing and what steps
need to be taken to remove them.”
He
says he wants competition in the telecom sector. “But
intense rivalries must not hurt balance sheets. There
must be competition. At the same time, there must not
be predatory practices. India is large enough, so there’s
room for everybody.”
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