MTNL for JVs in India, overseas markets: MoU
Amid its falling revenues and net profit, state-run MTNL said on Monday it is keen to expand its areas of operations by forming strategic alliances and joint ventures both within India and overseas.india Updated: Jul 27, 2009 21:11 IST
Amid its falling revenues and net profit, state-run MTNL said on Monday 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 per cent down from Rs 586.89 crore in the previous fiscal.
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 telecom services.
"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."