Tag Archives: MTNL

Cabinet Committee on Economic Affairs decides on 30% Quota to ITI

15 Wednesday Jan 2014

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The Cabinet Committee of Economic Affairs (CCEA) has approved the proposal of the DOT to continue allotment of 30% quota on telecom equipments for BSNL, MTNL to the ITI. The Press Statement issued by the Govt. in this connection is given below:

Procurement quota to M/s. Indian Telephone Industries Ltd. on procurements made by BSNL and MTNL

The Cabinet Committee on Economic Affairs has approved the following proposal of the Department of Telecommunications regarding continuation of reservation quota for M/s Indian Telephone Industries Limited (M/s. ITI Ltd.).

This will enable ITI to survive in the competitive environment of telecom manufacturing.

a) To continue the reservation quota policy for M/s ITI Ltd. by reserving 30 percent of procurement orders placed by BSNL and MTNL for M/s ITI Ltd., for products manufactured by ITI Ltd. and 20 percent of the network roll out orders for their turn key projects (like GSM network roll-out) of BSNL and MTNL.

b) ITI would accept orders under the reservation quota only after the price is known and it is commercially viable.

c) BSNL/MTNL will give 10 percent advance against the orders placed on ITI, subject to liquidation of advances outstanding against previous projects awarded to M/s ITI Ltd. by BSNL/MTNL., so that ITI does not face the problem of working capital for execution of orders, subject to adequate safeguards for proper utilization of these advances.

d) ITI shall exercise its option under the reservation quota within 15 days of the opening of bid.

e) The aforesaid policy measures shall remain in force for a period of one year with effect from 21.09.2013 and shall again be reviewed considering the financial health of ITl after the expiry of this period. However, the Government has introduced the Public Procurement Bill 2012 in Parliament, and under the provisions thereof, procuring entities, including CPSEs, would have to frame Rules for Public Procurement of Goods, Work and Services. Once such public procurement rules for CPSEs are framed after the enactment of the Public Procurement Act, these would also be applicable to CPSEs under the administrative control of the Department of Telecommunications.

BSNL and MTNL will be requested to extend the benefit of reservation quota to ITI Limited for a period of one year with effect from 21.09.2013.

The extension of the benefit of (i) 30 percent of procurement orders placed by BSNL / MTNL for M/s ITl Ltd. for products manufactured by it and (ii) 20 percent of the network roll out orders for turn key projects (like GSM network roll-out, etc.) of BSNL/ MTNL with 10 percent advance against the orders placed on M/s ITI Ltd., subject to liquidation of advances outstanding against previous projects awarded to M/s ITI Ltd. by BSNL/MTNL will ensure enough orders for ITl for production activities.

MTNL to order GSM lines worth Rs. 600 crores

14 Tuesday Jan 2014

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The CMD MTNL, Shri Garg has stated that MTNL would order GSM lines worth Rs.600 crores to update and improving its network, mainly 2G.
This most necessary considering the present efficiency of the MTNL services.

Private Telecom Companies oppose proposal to mandate government connections for BSNL, MTNL

14 Tuesday Jan 2014

Posted by in BSNL - Better Service to the Nation

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The Cellular Operators Association of India (COAI), the organisation of the private GSM Operators has opposed the proposal of the GoM on Revival of BSNL, MTNL to mandate the Central and State Governments and their PSUs to compulsorily use the PSU telephones.
There is no logic in their opposition. The private companies are continuously seeking all kinds of relaxation whether it is on tax, licence charges or revenue sharing. In addition, they manipulate the accounts to pay less to the government. A large number of cases are pending in this way. They want all benefits, but they oppose even a small benefit for the telecom PSUs.
The Government should immediately take decision on the proposal of the GoM and make it compulsory for all the Governments and PSUs compulsorily take the BSNL MTNL telephones and telecom services for their use.

GoM decides Refund of Spectrum Charges to BSNL, MTNL

10 Friday Jan 2014

Posted by in BSNL - Better Service to the Nation, PSU, Telecom

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The Group of Ministers(GoM) on Revival of BSNL which met yesterday, 9th January 2014, presided by Finance Minister P.Chidambaram, decided to refund the Spectrum Charges to BSNL and MTNL. BSNL will get a refund of Rs. 6,724.51 crore and MTNL Rs. 4,533.97 crore.
The charges are being refunded for the surrender of spectrum by BSNL for Gujarat, Maharashtra, Andhra Pradesh, Karnataka, Tamil Nadu and Kolkata and both Delhi and Mumbai for MTNL.
This has been one of the long pending demand of both the PSUs since the spectrum allotted to them was not technically and financially viable in the above areas.
“The refund will be made to ensure support for the revival and revitalisation of BSNL and MTNL in the competitive telecom sector. It shall also help these PSUs to arrange finances to meet basic financial commitments such as operation and maintenance of their telecom network,” the GoM stated.
The Joint Forum of BSNL/MTNL Unions/Associations has been continuously pressurising the DOT and the Government to refund these charges, which will help the PSUs to reduce their loss and utilise the funds for development. It had also submitted detailed memorandum to the GoM on this subject.
This is not charity, but only refund of the money for the surrender of the airwaves, which the government can again auction for mopping up funds.
The GoM has to take decisions still on the demand of the Joint Forum to mandate all the Central and state Governments and their PSUs that they should use BSNL/MTNL services. The proposal is already with the Government. Another major demand is to waive the Licence Fee for these government companies.
Our pressure should continue in these matters.

The Pension Contribution from BSNL to DOT should be on the actual salary

26 Thursday Dec 2013

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It has been the continuous demand of the BSNL employees that the pension contribution being paid by the BSNL to DOT in lieu of the Pension being paid by DOT to BSNL absorbed employees should be based on the actual pay and not the maximum of the pay scale which BSNL is compelled to pay now. The Forum of BSNL Unions/Associations has represented to the DOT, CommunicationS Minister, Finance Minister, Group of Ministers for Revival of BSNL and also to the Prime Minister on this matter, but so far the issue was not settled.
Now the Cabinet has decided that the pension of the MTNL employees will be paid by the Government as in the case of BSNL employees. Along with that it is also reported that the pension contribution to be paid by MTNL to DOT will be on the actual pay of the employee. This is good news.
Now the BSNL Management as also the Forum of BSNL Unions/Associations should immediately take with the DOT to change the pension contribution to be paid by BSNL to DOT in the same way. This will save a good amount to BSNL and it is also the correct way.

Good News! Cabinet approves MTNL Pension

26 Thursday Dec 2013

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Good News are there for the MTNL Employees! The Cabinet has approved government pension for the MTNL absorbed DOT employees as in the case of BSNL employees.
The case was taken by the MTNL Unions/ Associations as also the Joint Forum of the BSNL/MTNL Unions/Associations with the DOT and the Government. The Group of Ministers appointed for the Revival of BSNL and MTNL had recommended that MTNL employees be granted government pension as in the case of BSNL absorbed employees by the government, but with the condition that the pension will be limited to the corresponding pay scales of BSNL. (The pay scales of MTNL are higher than that of BSNL). The GoM also recommended that the pay scales of BSNL should be brought on par with that of MTNL in the 2017 wage revision.
We congratulate the MTNL employees and their unions/associations in this great achievement.

CLC Meeting on MTNL issues

02 Monday Dec 2013

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The Conciliation Meeting on the issues of MTNL including the Pension issues called by the Chief Labour Commissioner will be held at 1100 hours on 3rd December 2013 at Shram Shakti Bhawan, New Delhi. On the issues, Com. VAN Namboodiri held discussions with Coms. Kaushik and Mangeram , leaders of the United Forum of MTNL Unions.

Meeting of GoM on Revival of BSNL and MTNL

16 Friday Aug 2013

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It is reported that the meeting of the GoM on Revival of BSNL and MTNL has discussed the following and consensus reached:
1. The pay scales of BSNL may be brought to the level of MTNL pay scale by the next wage revision of 2017.
2. The pension for MTNL absorbed staff will be paid by the Government on the basis of X + 1, in which the pension equivalent to the pay scale of BSNL will be paid by government and the pension for the balance will be paid by MTNL.
3. The opinion/suggestion of the MTNL Unions/associations will be sought and taken in to consideration.

The details of the proposals/ decisions are yet to be confirmed.

GoM on Revival of BSNL & MTNL Meets

13 Thursday Jun 2013

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The first meeting of the Group of Ministers (GoM) on ‘Revival of BSNL & MTNL’ met yesterday, 12th June 2013, and started discussion in the matter. DOT, BSNL and MTNL are reported to have submitted its presentations on the present situation of the two companies and the reasons for the decline of services and revenues.

It is reported that the DOT requested for the refund of the charges of Rs. 12,846 crore for the BWA spectrum which has been surrendered by the companies. The liability of MTNL for the pension coming to about Rs. 7500 crore was also pointed out. BSNL and MTNL Managements are also reported to have represented their case for financial support.

The Forum of BSNL Unions & Associations have already submitted a detailed Memorandum to the GoM on how the BSNL can be revived. Forum has also sought a meeting with the GoM and its  Chairman, Finance Minister P.Chidambaram.

Forum has called upon all the Circle / District Secretaries to meet the Member/s of Parliament in their area and furnish the Memorandum to them with the request to take up the matter with the government to ensure financial support and preference to the BSNL. This is to be taken seriously and with implemented effectively and reported to Forum General Secretaries.

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

31 Friday May 2013

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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.