I am herewith reproducing an educative article by Mir Dasgupta, former AGS BSNLEU

Central Govt. should come forward with positive approach to save BSNL & other telecom PSUs

Mihir Dasgupta

  BSNL is passing through a difficult time for the last four years and now facing an acute financial crunch. During these four financial years, BSNL has posted ‘Net Loss’. It is a matter of grave concern. Because, BSNL is not mere a company; entangled with it is the genuine and legitimate interest of the nation and millions of common citizens along with about two and a half lakh regular employees, more than one lakh casual and contract workers and thousands of pensioners. This dismal situation is neither warranted, nor should it have arisen.

Why? We have to search the answer deep inside the annual Balance Sheets of BSNL. An analytical compilation of important financial data collected from all the hitherto published Balance Sheets of BSNL from its inception i.e. October 2000 to March 2012 has been published in the CHQ organ of AIBDPA ‘TELE-PENSIONER’, Year-2, No.-4, Oct-Dec 2012 (authored by this writer). All these data are BSNL’s official data. Let’s do a bit of exercise with those data.

1.BSNL had posted net      profit continuously during nine years from its inception, the total amount      being rupees 44,993 crore. On the other hand, during three recent successive      years of 2009-10, 2010-11 & 2011-12, for which Balance Sheets are      available, the total amount of loss comes to rupees 17,057 crore. Thus,      the ‘Cumulative Net Profit’ of BSNL comes to rupees 27,936 crore. Even if      the tentative loss of about 8,100 crore for the year of 2012-13 is added,      the amount of ‘Cumulative Net Profit’ comes to about 19,800 crore. This      figure is ‘Positive’ – not ‘Negative’.

2. Then, why BSNL is in      severe cash crunch? Where all these amount have gone? It is observed that      from the net profit, BSNL has paid to Central Government upto March’12 an      amount of rupees 5,556 crore as Dividend and an additional amount of      rupees 804 crore towards Tax on Dividend. The remaining amount has been      transferred to Balance Sheet as ‘General Reserve’. But there is virtually      no cash in the possession of BSNL for carrying out not only developmental      work but even day-to-day maintenance work also. The reason is, the Central      Government has sucked about 18,500 crore rupees in the name of 3-G and BWA      Spectrum Fees.

3. The government and      BSNL management are conveniently spreading the canard through various      media that the cause of loss of BSNL is the exorbitant expenditure on      account of employees’ remunerations. It is also being mischievously      propagated that 48 per cent of the income is going to pay the employees.      It is being done to hide the real truth by creating confusion.  It may be mentioned in this context that      there had been statutory wage revision for Executive and Non-executive      employees with effect from 1^st January 2007. Salary of ITS      officers had also been increased in a big way as per VI-CPC      Recommendations from 1^st January 2006. But the actual fact      projects an altogether different picture. It is a matter of fact that      during the three years when BSNL has posted loss, expenses on employees’      remunerations not only stood at almost a static position, but marginally      declined in 2011-12 compared to previous two years. Even then, why the      quantum of loss is increasing year by year? The precise cause is – BSNL’s income      is falling at a galloping pace. And obviously for this reason, the      percentage ratio of employees’ remunerations in respect to income is also      increasing. The following table will vindicate the contention.

• figures in crore rupees

4. In a single year, BSNL      earned highest income of rupees 40,177 crore in 2005-06. Compared to that,      income in 2011-12 has declined by rupees 12,243 crore i.e. 30.47 per cent.      The government and the management are meticulously trying to hide this      stark truth in a mischievous manner to absolve themselves from the sin      they have committed. The responsibility of decline can’t be vested in any      way on those employees who have earned more than 40 thousand crore rupees      for the company in a single year. It is the responsibility of the      government and the BSNL management only to give tenable answer and also      show the way of survival of BSNL.

5. BSNL’s income from      services has been declining continuously during last six years to touch      the bottom. The real reason behind this downfall is the conspiratorial      activities of the government and the management in unison to keep BSNL at      bay, so that it could not stand in front of private companies as a rock in      the fiercely competitive mobile telephony market. This period has      witnessed an explosion in growth of mobile phone connections. It is a      public knowledge, how this vicious circle has disabled BSNL by sabotaging      and killing all the big tenders for procurement of equipments for the      expansion and development of its mobile network. Even the management has      shown utter negligence to ensure steady supply of essential materials for      upkeeping the landline and broadband network. All these actions together      have pushed BSNL backward and backward. Above all, there is the policy and      programme of central government to destroy the public sector to ensure      unhindered profit of private sector.

6. BSNL has paid to the      central government exchequer a whopping amount of rupees 45,040 crore      towards different tax, license fee, spectrum fee, dividend etc. in 12      years (upto March’12). In addition to this, there is advance payment of      about 18,500 crore rupees for 3-G and BWA Spectrum and at least rupees 10      thousand crore towards Pension Contribution. In return, the government has      gradually stopped all legitimate assistance to BSNL. BSNL has been      providing various non-remunerative social services to the nation as a      responsible public sector enterprise. But waiver of license fee and      spectrum charges, as well as ADC & USO Fund allocations, as promised      by the government to compensate such losses, have all been withdrawn. Even      the payment of USO Fund special allotment of rupees 1500 crore for the      year of 2012-13, as also the refund of spectrum fee to the tune of 6,500      crore rupees towards surrendered BWA spectrum, has not been done. This has      put BSNL into further trouble.

In the light of the above factual discussion, it can be unquestionably concluded that there is no logical ground for BSNL embracing disaster. Everything is imposed on it with an ill intention. The owner – the Central Government is forcibly pushing this precious organisation to ruin.  The unions and associations of non-executive and executive employees under the leadership of BSNL Employees Union have resorted to sustained joint movement to resist the multi-prone attack. Simultaneously they have launched a unique programme of ‘Customer Delight’. But the Central Government and BSNL management are not interested at all to reciprocate this praiseworthy gesture in a dignified and positive manner. Their only prescription is the hackneyed VRS and disinvestment. Employees’ organisations have resisted this attack till now through joint struggles. If this prescription actually be a panacea, then why the dismal condition of ITI and MTNL is not improving, despite repeated administering of the same prescription? Government and management are duty bound to give convincing reply to this question also.

It is learnt from media reports that the security departments of the central government firmly hold that there should be continuous presence of public sector in telecom service sector. Because, in emergency situation, government will depend only on public sector for telecom services – not on the private telecom service providers. When this is the requirement, government is duty bound to play its due role to ensure not only sustenance, but sustenance with good health of the concerned Public Sector Telecom Enterprises viz. BSNL, MTNL & ITI during peace time also. It is to be kept in mind that in a vast country like India with its geographical diversity, telecom network can’t be built up overnight.

Recently, the Prime Minister has constituted a high power group of ministers (GoM) for revival of BSNL and MTNL. Forum of BSNL Unions and Associations has already submitted a detailed memorandum on the issue to the GoM demanding immediate financial and other supports for these two PSUs. They have also approached the MPs to impress upon the GoM. A national convention will be held at New Delhi in the first week of August followed by State and District level conventions. At the same time, Forum and BSNLEU have called upon the employees to render their best to improve the services. AIBDPA fully supports this initiative of the unions and associations.  It is to be seen what the GoM would prescribe.

In this situation, Central Government should come forward immediately with required financial and other assistance for the survival and revival of BSNL, MTNL and ITI. This is no charity – this is legitimate right in the overall interest of the nation. When the central government doles out more than five lakh crore rupees every year to safeguard the profit and other interests of the big private corporates, it can’t be comprehended that it is unable to assist its own telecom enterprises in the overall interest of the nation. The employees are already vocal on the issue. The urgent requirement is that the right thinking people exert pressure on the government. We appeal to the trade unions, employees’ organisations, mass organisations, pro-people political parties, parliamentarians and all patriotic people to come forward and compel the government to accept the demand to save the nation’s precious assets.

All together, we are sure to win!

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