Tag Archives: loss

Reliance Jio may post loss of Rs. 19,000 crore in 2017-18

04 Tuesday Apr 2017

Posted by in Neo-liberal policy

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It is reported in Economic Times that Reliance Jio will register a loss of Rs 19,600 crore in 2017-18 and Rs 11,500 crore in 2018-19.

Jio has got about 100 million customers. It has got a deep pocket and  is trying with all the help from the government to ride over all other telecom companies. Once the other companies are put down, then the charges will be increased and the loss will be made up.

Of course, corporates have no respect for law and ethics. Profit is their only motive. And Reliance tops the list.

MTNL closes CDMA Services in Delhi

10 Tuesday Nov 2015

Posted by in Telecom

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MTNL has closed its CDMA services in Delhi as per media reports. It has already surrendered part of its CDMA spectrum to the DOT and the same has been auctioned by the latter. But whether the refund is given to MTNL or not is not known. As per the same report, the revenue both for landline as well as mobile have been reduced.

The Government should urgently provide financial assistance to MTNL to improve  its services. The government can not sit tight and allow the company to fall down.

Air India – Only 9 daily flights out of 370 profitable

25 Tuesday Nov 2014

Posted by in Neo-liberal policy, News, PSU

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The Minister Civil Aviation told the Parliament today that only 9 flights out 370 flights daily of Air India, are profitable. All other flights are causing loss.

The minister also stated that Air India is posting loss for the last three years. The loss in 2011-12 was Rs. 7559.7 crore, in 2012-13 Rs. 5490.2 crore and in 2013-14 Rs. 5388.8 crore. the Minister also told that as on 31 October, Air India has a total loan of Rs. 52237 crores out of which Rs. 23,358 crore is aircraft loan and Rs. 28,879 crore working capital loan.

Both the Congress and BJP will be very happy. Both the UPA and NDA governments together have been able to make the profitable Air India to a loss making PSU. The Air India –  Indian Airlines Merger with out any sustainable plan, purchasing of large number of planes without any requirement, handing over routes to foreign companies, handing over profitable domestic routes to private airlines , scheduling AI flights immediately after the schedule of private air lines, high rent charges to the private airports, mismanagement and of course the policy decisions against PSUs – all these have pushed the Air India in to big loss. The government might have already started thinking about closing or privatising the Air India as is its policy. This has to be defeated and the Air India saved.

 

Is the wage burden, the reason for loss of BSNL?

23 Wednesday Apr 2014

Posted by in BSNL - Better Service to the Nation, BSNL News

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Whenever the DOT or BSNL Management is asked about the financial condition of BSNL, they immediately blame the wage bill of the huge workforce of BSNL. They will point out that the wage bill comes to about 50% of the expenditure or so. Next point will be to implement VRS for about one lakh workers so that the expenditure can be reduced and BSNL saved. Even in interview with the CMD BSNL, the Business Lines column writer has reported the CMD BSNL, mentioning the wage increase as one of the main reasons of the financial difficulties.
In the report of the Group of Ministers from BSNL, again the main reason for the financial difficulties is mentioned as huge wage bill coming up to 50% of the total expenditure.
All the above arguments are a fallacy to mislead the government and the public. Let us examine the points one by one.
1. Did the wage bill increase? No. The wage bill for 2009-10 was Rs. 13,455 crore, for 2010-11 Rs. 13,791 crore, for 2011-12 Rs. 13,406 crore and for 2012-13 Rs. 13,856 crore. One can see that there is no increase as such, but only small amount more or less each year.
2. The wage bill comes to 50% of the revenue: The wage bill has increased in %, not because of the actual increase of wages, but due to loss of revenue. The revenue came down drastically during the period mentioned above. While the revenue was Rs. 34,708 crore in 2009-10, it reduced to Rs. 29,686 crore in 2010-11, Rs. 27,933 crore in 2011-12 and to Rs. 26,396 in 2012-13. it is because of this drastic reduction in revenue that the % of wage bill has gone up. For example, if the revenue has up to Rs. 50,000 crore, the wage bill come to only between 25%-30%.
3. Who is responsible for the loss in revenue? Mainly it is the anti-PSU policy of the government. Secondly, it is the inept management. And thirdly a casual attitude of some workers.The government and management do not miss any chance to cite the example of the private companies, their work, profit etc. But they once again forget a important thing. In the private sector, when there is any loss, the management is fully responsible. The CMD and top officers resign on their own or are sent by the company making them responsible for the loss. But the same management which caused the loss continues without any stigma in BSNL.
4. What is the efficiency rate of the company management?: The rate is very low. None of the projects are completed in time. Whether the installation of 2199 towers in the 9 naxalite affected areas, The construction of the OFC lines for the Defence to enable them to release the spectrum, NOFN, BBNL etc. Everything in lagging behind. Who is responsible? The Management.

The Management and the Government should wake up from the slumber, instead of sleeping over the works and projects and sincerely and seriously attend to work. The workers are always ready to put all their strength for improving the situation so that BSNL can be saved and an efficient service provided.

TRAI recommendation on Spectrum charges will cause loss of Rs.3,738 crore to Govt.

27 Friday Dec 2013

Posted by in Telecom

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NEW DELHI: The Department of Telecom has estimated that lowering annual spectrum fee as recommended by Trai will cause the national exchequer a minimum loss of Rs 3,738 crore on renewal of the three licences that are due to expire in 2014.

Airtel’s licences in Delhi and Kolkata, Vodafone’s in Delhi, Mumbai and Kolkata and Loop Mobile’s in Mumbai are to expire in 2014.The TRAI has recommended 3% flat rate for the licences which is below the present rate. (Courtesy: ET)

BSNL Crisis – Not due to wage increase but due to less Revenue

13 Friday Dec 2013

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The government, BSNL Management, media and vested interests are continuously propagating that the crisis in BSNL is partly due to the increase in wages of employees which has shot up to 52% of the total revenue.
This propaganda is completely false and based on wrong premises. The fact is that for the last five years, there has not been any increase to be mentioned as such in the wages of the employees. Just go through the following figures showing the wages for the past few years:
2009-10 : Rs. 13455.04 crore, 2010-11: Rs. 13790.95 crore, 2011-12: Rs. 13406.04 crore, 2012-13 : Rs. 13757.82 crore
But the Revenue has been going down as can be seen below:
2007-2008: Rs. 32842.30 crore, 2008-09: Rs. 30169.42 crore, 2009-10: Rs.27913.44 crore, 2010-11: Rs. 27044.71 crore, 2011-12: Rs. 25982.13 crore, 2012-13: Rs. 25654.81 crore.
While the wage expense from 2009-10 to 2012-13 was almost the same with very minor difference, the revenue came down from 2007-08 to 2012-13 from Rs. 32842.30 crore to Rs.25654.81 crore,a reduction of more than Rs. 7,000 crore. If the revenue had increased or at least maintained its position, the percentage of wages should have been far less, say about 33%.
As stated earlier it is not that the wages have increased, but it is that the revenue has decreased. The Management and Government very well know this fact, but want to mislead the workers and public. But the workers are also aware of the facts.

BSNL Loss – due to less revenue and not due to salary increase

19 Friday Jul 2013

Posted by in BSNL - Better Service to the Nation

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BSNL, DOT and Government continuously propagate that the loss to BSNL is due to the excess staff and one lakh surplus workers should be reduced through VRS. What are the facts?

There was 3.97 lakh employees when BSNL was formed in October 2000. As on 31st March 2012, the strength of employees was only 2.58 lakhs. Within 12 years, 1.39 lakhs have been reduced by retirement etc.
What about the profit/loss? When there were 3.97 lakhs BSNL was having profit. All the first 9 years from 2000-2001 to 2008-2009, when there was much staff then at present, mostly above 3 lakhs, there were good profits. Thus the argument of the management that the loss is due to salary of employees is completely devoid of facts. The % of salary to revenue/expenditure has been increased only because the revenue has gone down during the last 4 financial years. Who is responsible for the revenue loss? It is not the workers. It is due to the anti-PSU policies of the government and the lethargic BSNL management which utterly failed in expanding and developing the services. The cut-throat competition is also another reason.

The BSNL Management is continuously mentioning that the salary of the workers is the reason for loss of the company is only to cover up their mismanagement which resulted in the loss of revenue and hence the loss.

MTNL posts loss of Rs.1,985.93 cr. loss for 2012-13

31 Friday May 2013

Posted by in Telecom

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MTNL, the telecom PSU providing services in the metropolitan cities of Delhi and Mumbai, has posted a loss of Rs. 1,985.93 crore for the financial year 2012-13. This is more than the loss posted in 2011-12, which was Rs. 1,236.99 crore. MTNL is in loss for the last four years.

BSNL management has stated that the loss is due to the increased salary expenses of the employees. The employee expenses increased from Rs.1,236.99 last year to Rs. 1,927.33 crore this year. But this argument is faulty since it is normal for the salary increase in every year due to increments, pension contribution paid to the government etc. How can any management think that salary will not increase.

The real issue is that the revenue has not increased. It is the responsibility of the management to ensure that the business improves as also the revenue. The management has utterly failed in this and hence the loss. Further the government has been squeezing the company by imposing high charges for spectrum and increased contribution to pension by taking the maximum of the pay scale for calculation of the pension contribution to the government. Further the arrears to be collected are huge and probably a good amount will be due from the Central and State governments.

Whatever are the reasons for the loss, it is the responsibility of the government to ensure that the PSU is supported financially for its revival. Of course, the workers have got a major role for improving the services to the people.