New Delhi, March 11: The roadmap for the merger of Bharat Sanchar Nigam Ltd (BSNL) with Mahanagar Telephone Nigam Ltd (MTNL) is likely to be put on the drawing board by next month.

The department of telecom (DoT) has called for a meeting on March 21 to discuss the options put forth by ICICI Securities, the consultant appointed by the government to look into the possibilities of synergy between BSNL and MTNL. The consultant?s report was submitted on February 28.

One of the options that the consultant has given maximum weightage is that MTNL should be made a subsidiary of BSNL.

This has been listed as the first option by ICICI Securities.

According to a senior DoT official, ?Even if we accept the first option (that is, if MTNL is made a subsidiary of BSNL), then the boards of both companies will continue to remain independent of each other. The financial systems too will not undergo a major change. There will also be a need for an initial public offer (IPO) from BSNL.?

The second option is that MTNL should merge with BSNL.

?However, we will have to examine it fully since there are many employee-related options that need to be ironed out before we can embark upon this form of synergy,? the official said.

MTNL has already opposed the subsidiary route saying it is not going to deliver the desired results of synergy, cost reduction and unified command.

Sources in the DoT said options suggested by ICICI Securities are based on several criteria that the department had told the consultant to keep in view ? competitive position, shareholders? value, cost implication, execution difficulties, besides others.

The official said once the report is discussed and a final option decided, the issue will have to be taken to the cabinet for its approval.

The government will assess and finalise it after incorporating the views of both the public sector telecom companies and that of the consultant.