The MTNL board has approved a 10-year service agreement with BSNL and several other key proposals, including the sale of shares in its overseas subsidiary, Mahanagar Telephone (Mauritius) Ltd. According to a regulatory filing by MTNL, the board has also given the green light to sell shares of MTNL in MTNL STPI IT Services Ltd, or MSITS.
The board “accorded its approval to enter into a service agreement between BSNL and MTNL for a period of 10 years or unless it is revoked earlier by giving a notice of six months or extended by mutual consent between the parties, subject to approval of the said service agreement by the Department of Telecom/Ministry of Company Affairs,” the filing stated.
Additionally, the board approved the sale of shares in Mahanagar Telephone (Mauritius) Ltd, an overseas wholly-owned subsidiary, following the applicable guidelines set by the Department of Investment and Public Asset Management (DIPAM) and other regulatory processes.
In another significant move, the board has cleared a proposal for the closure of Millennium Telecom Limited (MTL), a wholly-owned subsidiary of MTNL. This decision will be executed in accordance with the applicable DIPAM guidelines and other required processes.
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