The state-run telco has inked a pact with Softbank to co-work on "interest areas" and is also in talks with the Japanese telecom companys investee company Paytm for a tie-up, the official said.

Photo Credit : PTI,

 Bharat Sanchar Nigam (BSNL) feels a merger with MTNL will be positive for both the companies, but there are a few impediments like the latters huge debt and the difference between pay scales which need to be sorted out, a top official has said.

However, there is no specific plan on the merger in the works at present, beyond the appointment of a consultant by the government.

The state-run telco has inked a pact with Softbank to co-work on "interest areas" and is also in talks with the Japanese telecom companys investee company Paytm for a tie-up, the official said.

"Merger between the two (MTNL and BSNL) is going to be good for both the companies. Lets take the argument that it is going to be good, but there are various issues that need to be sorted out," its chairman and managing director Anupam Shrivastava told PTI recently.

The impediments include MTNLs debt of over Rs 16,000 crore as of December 2017 and the difference between the pay scales for employees of both the companies, he said.

Another difficult factor will be MTNL being a widely-owned listed entity, he added.(PTI).