The MTNL board on Wednesday approved a 10-year service agreement with BSNL, along with several other proposals, including the sale of shares in its overseas subsidiary, Mahanagar Telephone (Mauritius).
During its meeting, the board also authorised the sale of MTNL's shares in MTNL STPI IT Services Ltd, according to a regulatory filing by MTNL.
The board agreed to enter into a 10-year service agreement with BSNL, which can be terminated with six months' notice or extended by mutual consent, pending approval from the Department of Telecom or the Ministry of Corporate Affairs, the company said in the exchange filing.
Additionally, the board approved the sale of MTNL's shares in Mahanagar Telephone (Mauritius) Ltd, an overseas wholly owned subsidiary, in accordance with the Department of Investment and Public Asset Management guidelines and other relevant regulatory processes.
The board has also cleared a proposal for closure of Millennium Telecom Ltd, a wholly owned subsidiary of MTNL. This will be done in line with applicable DIPAM guidelines and other stipulated processes.
(With Input From PTI)
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