BSNL-BBNL merger close to finalisation, Deloitte to submit report on Friday

Industry:    2022-11-25

Bharat Sanchar Nigam Ltd (BSNL) and Bharat Broadband Network’s (BBNL) merger to set up the country’s largest optic fibre cable (OFC) network is reportedly close to finalisation. According to a report in Hindu BusinessLine (BL), Deloitte has been tasked working out the modalities and creating a company that would help in expanding the government’s digital reach under BharatNet.

“The valuation report to determine the swap ratio and valuation of assets and liabilities is underway and will be submitted by November 25 to BSNL, and the draft scheme of merger along with the Board report by December 18. This has to be undertaken by Deloitte,” the source told BL.

On July 27, the government approved a Department of Telecommunications (DoT) proposal for the “Revival of BSNL and merger of BBNL with BSNL”. BSNL was reportedly made responsible for fibre services in all villages.

Since August, BBNL has terminated the deputation of 36 Indian Telecom Service officers. They have joined BSNL. It has been decided that BSNL, BBNL and DoT officials would meet every Wednesday.

“BBNL relieved 35 ITS officers on September 30 from its strength; all 35 ITS officers joined BSNL on October 1. Also, to expedite the process of the merger in time bound manner a Committee has been constituted and to closely watch and monitor the progress and to supplement the Transaction Adviser’s (Deloitte) efforts, it was decided that the committee shall have meetings on every Wednesday,” another source told BL.

In 2020, Prime Minister Narendra Modi announced that under the BharatNet project, all the villages in the country would be connected through optical fibre within 1,000 days.

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