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Govt junks MTNL-BSNL merger, but what is its gameplan?

Given that the plan to merge the ailing BSNL and MTNL made little sense, the government has done well to formally defer the plan, based on a written reply in the Lok Sabha. Mergers are always tough to pull off in even the private sector given different corporate cultures, but it gets even tougher in a PSU environment where jobs are guaranteed; apart from issues like seniority, it would have been next to impossible to get MTNL’s staffers to take a 20% pay cut to match BSNL salaries.

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