MTNL for JVs in India, overseas markets: MoU
Amid its falling revenues and net profit, state-run MTNL on Monday said it is keen to expand its areas of operations by forming strategic alliances and joint ventures both within India and overseas.
New Delhi: Amid its falling revenues and
net profit, state-run MTNL on Monday said it is keen to expand its
areas of operations by forming strategic alliances and joint
ventures both within India and overseas.
The PSU had reported a net profit at Rs 214.82 crore in
2008-09, 63 percent down from Rs 586.89 crore in the
A memorandum of understanding, which MTNL has entered
into with the Department of Telecom for 2009-10, said the PSU
will be "exploring the possibilities of forming strategic
alliances and joint ventures in India and Overseas".
Powers delegated to Navratna companies shall be available
to MTNL (which is also a Navratna PSU) to exercise enhanced
autonomy and delegation of financial powers, the MoU said.
DoT said that MTNL will continue to get grant of tax
concession which is available to other companies providing
"The government will reimburse the cost for the optical
fiber based, defence network being laid in both Delhi and
Mumbai by MTNL in lieu of releasing 2G/3G spectrum by
defence," it added.
Licence fees paid by MTNL will be treated as expenses
deductible from the profit, the MoU said, adding that the
"performance of MTNL will be monitored by DoT half yearly
against the targets given in the MoU and evaluated at the end
of the year."