MTNL enters 10-year service agreement with BSNL
Mahanagar Telephone Nigam Limited (MTNL), in a press release, made several announcements after a board meeting was held on Wednesday. These announcements included agreements and approvals of proposed sales.
MTNL entered a service agreement with BSNL for a 10-year period. The agreement can be revoked by mutual consent of the two parties by giving a six-month notice.
MTNL also announced approval for closure of Millennium Telecom Limited (MTL), a wholly owned subsidiary of MTNL. The procedure will comply with applicable DIPAM guidelines and will follow the process as per SEBI/ Company laws.
The company further approved the proposed sale of shares of MTNL in MTNL STPI IT Services Ltd (MSITS) under intimation to STPI. This will be done by complying with the provisions of JV Agreement with STPI and complying with applicable DIPAM Guidelines. and all other processes as per SEBI/Company laws. It will offer the same to any other PSU or State Government.
Additionally, it approved the proposal of sale of shares of MTNL in Mahanagar Telephone (Mauritius) Ltd (MTMLan overseas wholly owned subsidiary of MTNL by complying with applicable DIPAM Guidelines and all other processes as per SEBI/RBI/Company laws. It will also follow extant Mauritian laws.
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