Kuldip Singh, director, technical, of telecom PSU MTNL, has been appointed the new chairman and managing director with immediate effect.
In a surprise development, telecom PSU MTNL's chairman and managing director R S P Sinha has resigned from the post.
Telecom PSU MTNL has paid Rs 314 crore (Rs 3.14 billion) to BSNL, which had demanded Rs 1,062 crore (Rs 10.62 billion) for carrying the former's STD traffic.
Stocks of public sector undertakings (PSUs) have been on fire in the past year as investors cheered an improvement in key operating metrics and embraced counters of these state-owned enterprises, analysts suggest. The S&P BSE PSU Index has gained over 90 per cent in the past year, rising much higher than the S&P BSE Sensex, which has rose nearly 19 per cent during this period, according to ACE Equity data. The BSE PSU Index, reports show, has delivered a compound annual growth rate (CAGR) of 28 per cent (including dividends reinvestments) over five years and risen by almost 60 per cent in the past year.
The decision is likely to bring additional amount of about Rs 1,500 crore or Rs 15 billion (including interest) in the books of MTNL as refund from government for the pension that the PSU paid to its employees.
The PSU is planning to convert Rs 3,000 crore (Rs 30-billion) loan into long term debt.
If it fails, the services will be stopped from March 1.
State-owned MTNL will soon reap a tax refund windfall, as the Income Tax department has been asked to return a whopping Rs 1,233 crore (Rs 12.33 bilion) to the telecom PSU
Stocks of government probables for divestment or stake sale such as Steel Authority of India (SAIL), Mahanagar Telephone Nigam (MTNL), National Aluminium Company (Nalco) and Container Corporation (Concor) have outperformed the markets in the past one year.
R S P Sinha has been appointed Chairman and Managing Director of Mahanagar Telephone Nigam Ltd with immediate effect.
The public sector unit had borrowed Rs 7,500 crore (Rs 75 billion) in the last one month to pay the government for acquiring 3G and Broadband Wireless Access spectrum in the two metros of Delhi and Mumbai.
BSE PSU index rallies 10% in one month; nearly a third of the stocks on the index has gained 20% over the period
Oil explorer ONGC again emerged as the highest profit-making PSU of the country during 2012-13 while telecom major BSNL turned out to be the biggest loss-making enterprise, says the Economic Survey.
The headline numbers may reflect that the stock markets are down very sharply. But look deeper and you will find that the major reason why the stock market has declined in the recent past was on account PSUs!
The government has been pressing citizens to pay taxes and be compliant, but they have very little to show regarding improved efficiencies in the companies they themselves own, the fund managers said.
The department for promotion of industry and internal trade has asked the telecom department and State-owned BSNL to put on hold the tender for setting up 4G network, valued at Rs 9,000 crore, after allegations emerged that the tender favoured foreign companies. The tender was floated by BSNL in March under the new management for setting up the 4G network.
Officers of Central Public Sector Units will go an indefinite nationwide strike from December 22, demanding higher salaries and autonomy for the public sector.
The PSU announced a plan that will offer customers high speed (2 mbps) Internet access at a monthly rental of Rs 99 and 150 mb free download. Alternately, users can opt for a monthly rental scheme of Rs 149 with free download of 400 mb.
Subscriber needs to pay Rs 19 for the service.
Private GSM operators on Thursday got a reprieve from Supreme Court, which has stayed Telecom Regulatory Authority of India's notices asking them to refund excess charges levied from customers on calls made to the networks of PSU telecom firms.
As the nation woke up to images of Prime Minister Narendra Modi splashed across the front page of newspapers by Reliance Industries to announce the launch of its 4G services, Shiv Sena's Member of Parliament from South Mumbai, Arvind Sawant, was not impressed.
BSNL, Tata Teleservices and Reliance Communications, who also provide GSM technology-based services, are not part of the report.
The Committee on Public Undertakings (COPU) of Parliament has summoned the telecom secretary R Chandrasekhar on Tuesday to estimate the loss suffered by public sector undertakings BSNL and MTNL in the 2G and 3G spectrum allocations.
Private telecom operators have overtaken their public sector counterparts -- Bharat Sanchar Nigam and Mahanagar Telephone Nigam
Telecom subscriber base crossed the 95-crore mark in August, after a gap of more than two years, on the back of higher mobile users whose number touched 92.43 crore.
The Sensex closed with a gain of 75 points at 4,835. The Nifty ended above the 1,500-mark at 1,508 -- up 24 points.
The company, which has a subscriber base of 120 million, also plans to raise funds via a bonds issue. The company's impending 4G launch is also expected in the second half of the current financial year for which it would invest Rs 12,000 crore, partly through bonds.
Uninor added 8.53 lakh subscribers to take its base to 4.01 crore during the reported period.
The country's wireless subscriber base fell to 87.05 crore at the end of September, registering the first drop in five months, after Reliance Communications deactivated services of over 1 crore "unprofitable" users.
The list is of companies declared sick as on March 31, 2014.
The BSE Sensex zoomed 318 points to end at 33,351.57, while the broader Nifty spurted 88 points to 10,242.65.
Both the indices ended at their highest levels since February 1.
'Our mandate is to work in a transparent manner, keeping two objectives in mind - consumer interest and growth of the telecom sector.'
Participants will watch out for the Brexit poll outcome in the late morning trades tomorrow.
Indeed, this is one policy area where the Modi-led government is different from the one that was headed by Atal Bihari Vajpayee.
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