Tag Archives: BSNL – MTNL

On Revival of BSNL / MTNL – Reply by Communications minister in Parliament

20 Wednesday Dec 2017

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THE REPLY GIVEN IN PARLIAMENT ON BSNL/MTNL REVIVAL BYTHE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)
We are reproducing below, the reply given by the Communications Minister in the Parliament on 02-08-2017. The reply clearly indicae the mindset of the government. Instead of formulating a revival plan and assisting BSNL, the Minister is finding justifications for the present situation.

REPLY BY MINISTER:

(a)Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) were earning profits since their inception until 2008-09. However, their financial condition has been affected due to various reasons. Major reasons are as follows:
•One time upfront cost of spectrum for 3G and BWA (Bandwidth Wireless Access) required to be
paid in 2010 for the amount of Rs.11097.97 crores by MTNL and Rs 18500.38 crores by BSNL
which has eroded their reserves. MTNL had to take the loan to meet this expenditure. This has
created financial stress on both PSUs.
•Both PSUs are also burdened with salary payments of the legacy DOT (Department of
Telecommunications) employees, who are now working as absorbed employees in these PSUs.
•The market dynamics have changed in last 5 to 6 years in telecom sector because of the entry of more number of operators, which have covered major market share and put lot of pressure on the revenues of these PSUs.
•Both the PSUs could not invest timely in upgradation of their infrastructure.

•BSNL is providing telecom services in non-profitable areas like remote and hilly regions in various states e.g. Himachal Pradesh, Uttarakhand, Jammu & Kashmir, North East, Chhattisgarh,
Andaman & Nicobar Islands and Lakshdweep Islands.
•Both the PSUs have to follow the prescribed guidelines and procedures which sometimes leads
to inherent delays.
•MTNL is providing its services only in Delhi and Mumbai Service Areas unlike other major
Telecom Service Providers (TSPs).
Government has taken various steps to make BSNL and MTNL viable in the background of stiff
competition in the telecom sector by:
•Refund of surrendered BWA (Broadband Wireless Access) spectrum in two service areas held by MTNL and in 6 service areas held by BSNL. Under this head, Rs. 4533.97 crore has been
refunded to MTNL through bonds and Rs. 6724.51 crore has been refunded to BSNL through
budgetary resources.
•The pension liability of MTNL for its staff who got absorbed from DoT, has been taken over by the Government.
•Notional loan of Rs. 1411 crore to BSNL which was due to be paid to the Government was
waived-off.
•Financial support of Rs. 492.26 crore has been given to MTNL on account of liability arising from levy of Minimum Alternate Tax (MAT).
•Refund of Rs. 458.04 crore to MTNL and Rs. 169.16 crore to BSNL on account of surrender of
CDMA (Code Division Multiple Access) spectrum.

Government has also assigned some projects to BSNL, namely:
•Comprehensive Telecom Development Plan for the North-Eastern Region for provision of mobile services in uncovered villages in Arunachal Pradesh and two districts of Assam at estimated project cost of Rs. 1975.38 crore and implementation of Transmission-Media Plan for North Eastern Region at an estimated cost of Rs.295.97 crore on 10.9.2014.
•Implementation of providing mobile connectivity in 2199 identified locations in Left Wing
Extremism (LWE) affected areas at an estimated cost of Rs. 3567.58 crores on 4.6.2013.
•Implementation of Comprehensive Telecom Development plan for Andaman & Nicobar Islands
and Lakshadweep Islands through augmentation of satellite connectivity/bandwidth at an
estimated cost of Rs. 120.49 crores on 7.11.2014.
(b) & (c)At present, there is no proposal for merger of BSNL and MTNL. However, based on the
financial results of MTNL for the financial year 2016-17, MTNL has been classified as “Incipient
Sick CPSE” as per Department of Public Enterprise (DPE) Guidelines. As per the DPE guidelines,
Department of Telecommunications has to formulate revival/restructuring/closure road map for MTNL, the process of which has been initiated.

NITI Ayog denies having recommended strategic sale of BSNL and MTNL

21 Thursday Jul 2016

Posted by in BSNL

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The strong protest from the unions/associations of employees, Pensioners and contract workers in BSNL/MTNL have compelled the NITI Ayog to take a U turn in the matter of strategic sale of these two telecom PSUs.

It has issued a statement stating that it has not taken any such decisions. The extract of the statement as reported in the press is given below:

“Denying media reports of strategic disinvestment in Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL), Niti Aayog on Wednesday said that the reports are incorrect.

“A section of the press has carried a news report that Niti Aayog may consider strategic sale in BSNL and MTNL,” Niti Aayog stated in a release.

“There is no such proposal with Niti Aayog and the report is factually incorrect,” it added.

According to media reports, the government was considering strategic sale in the telecom majors to revive its growth.” (Courtesy:The Statesman)

This is a big success of the unity of the BSNL and MTNL workers! But workers have to be alert to any further move from the government in this matter.

 

The Government should urgently help BSNL, MTNL

04 Monday Feb 2013

Posted by in BSNL - Better Service to the Nation

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Both BSNL and MTNL are in financial difficulties. Both have posted loss for the last three years. This year also it is not going to be different. The chances are that the loss may increase.
It is a moot question to ask. If the BSNL and MTNL were not formed and the services were being provided by DOT itself, this position would not have arisen. But Government has consciously created the present situation by corporatisation. All the present problems have started with the corporatisation.
As such, now it is the responsibility of the government to take necessary steps to restore the financial viability of both these PSUs. Sufficient Funds should be urgently given, the inefficient management should be made to be accountable and the co-operation of the workforce ensured.
The workers and their organisations are ready for maximum support and co-operation, but the initiative is to be taken by the management.This is completely lacking, unfortunately.
We can not blame others and sit silent. A massive movement of the BSNL and MTNL workers is necessary to change the situation. Workers and their unions/associations have to take this great task to rejuvenate BSNL and MTNL.

Joint Forum plans for intensified programmes on ITS issue

23 Friday Nov 2012

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The Joint Forum of BSNL & MTNL Unions/Associations in its meeting on 23rd November expressed its strong protest against the inaction and negative attitude of the government and BSNL-MTNL managements in settling the ITS repatriation issue and has decided to intensify the struggle. The programmes will be finalised in the 4th December meeting.

Suggestions also came from unions that the future struggle should include the Financial viability of the two PSUs, Pension of MTNL employees, refund of spectrum charges etc. which also will be discussed in the next meeting.

BSNL – MTNL Unions/Associations meet

26 Friday Oct 2012

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It was a happy occasion when all the unions/associations of executives and non-executives both in BSNL and MTNL met today, 25th October, to discuss about the common issue of ITS repatriation which is pending for  a long time and the agitation started by the Forum of  Unions/Associations. The meeting was held in Room No. 756 of Kidwai Bhawan, New Delhi. 28 comrades both from BSNL and MTNL participated. Com. M.K.Bagchi, Convener, United Forum of MTNL Unions/Associations presided. Com. VAN Namboodiri, Convener, Forum of BSNL Unions/Associations briefed the house about the programmes decided by the Forum in this connection and requested for a joint programme of BSNL and MTNL Unions/Associations in this matter. All were of the opinion that a joint struggle is very necessary.

The meeting will continue tomorrow ( 26th October) after a separate meeting by the MTNL Unions/Associations