Govt tells BSNL to look at options, including closure

whitestar_999

Super Moderator
Staff member
Govt tells BSNL to look at options, including closure - Times of India
NEW DELHI: The government has asked struggling state-owned telco BSNL to look at all options, from a revival plan to disinvestment and even closure, as it looks to tackle the bleeding at India's largest loss-making PSU.

The direction to the company - which had accumulated losses of Rs 31,287 crore at the end of 2017-18 - was given following a meeting of top BSNL officials with telecom secretary Aruna Sundararajan, sources told TOI.

BSNL chairman Anupam Shrivastava made a presentation to the telecom secretary, where he gave details about the company's financial health, its accumulated losses, the impact on business following the entry of Reliance Jio, and possible voluntary retirement scheme (VRS) and early retirement plans for employees.

Interestingly, the government - while looking at revival options - also asked the company about an analysis if its business was shut down. BSNL was asked to submit "comparative analysis of all options available with the government, i.e. strategic disinvestment of BSNL, closure or revival with financial support", sources said.

BSNL said, apart from competition, what is troublesome for the company is its large, ageing manpower. It spoke about the need to reduce this, either through a VRS or by bringing down the retirement age from 60 years to 58 years. "If the age of superannuation is reduced from 2019-20, there would be savings of approximately Rs 3,000 crore in the wage bill."

Regarding VRS, the company said it will target employees aged 56-60 years, that will make 67,000 employees eligible for it. "Assuming 50% of these employees (33,846) opt for VRS, this shall result in a saving of Rs 3,000 crore in salary bill. The ex-gratia shall vary from Rs 6,900 crore to Rs 6,300 crore for various fitment."

BSNL also suggested monetisation of the company's large land-bank and buildings holding, which is estimated to be worth Rs 15,000 crore. It said this could be done over the next two-to-three years by the department of investment and public asset management (DIPAM).
:lol: lets hope it comes true :lol:
 

Stormbringer

Ambassador of Buzz
Govt tells BSNL to look at options, including closure - Times of India

:lol: lets hope it comes true :lol:
I hope they don't. If it closes , less options for the people and one step closer to Monopolization. Look at Canada for example. 2- 3 players only and they get to set prices as they please.
 

chimera201

Wise Old Owl
aare but BSNL is the only option in rural areas. Wishing it to close is bad. They just need to get good or privatise it. It's also part of the reason for their losses. Because connectivity in rural areas is expensive. No private organisation is going to lay down cables there since no profit for them.
 

meetdilip

Computer Addict
BSNL's loss has nothing to do with connectivity in rural areas. If I ( rural ) does not have email, how will you ( metro ) can send me an email ? Their profit margin is less in rural, that's all. You have no idea how BSNL was looting us pre Jio.
 
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whitestar_999

Super Moderator
Staff member
I hope they don't. If it closes , less options for the people and one step closer to Monopolization. Look at Canada for example. 2- 3 players only and they get to set prices as they please.
Demand creates supply in any free market.Don't know much about Canada but that is a developed country & this is a developing country so no simple comparisons can be made.
 
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whitestar_999

Super Moderator
Staff member
aare but BSNL is the only option in rural areas. Wishing it to close is bad. They just need to get good or privatise it. It's also part of the reason for their losses. Because connectivity in rural areas is expensive. No private organisation is going to lay down cables there since no profit for them.
Chances of jio working in rural areas is higher than old bsnl line working there.Wifi is the future for remote areas.
 

chimera201

Wise Old Owl
Chances of jio working in rural areas is higher than old bsnl line working there.Wifi is the future for remote areas.

Yeah but you can't download more than 100GB/month at the same price with Jio can you? BSNL has a wimax thing where you can have unlimited downloads for a very good price.
 
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whitestar_999

Super Moderator
Staff member
Yeah but you can't download more than 100GB/month at the same price with Jio can you? BSNL has a wimax thing where you can have unlimited downloads for a very good price.
You can't have your cake & eat it too.Why would anybody need 100s of GB data in a month in a rural area when many people living in urban areas are happily using their jio/others/now even bsnl with 1.5-3gb data limit per day?If somebody wants to travel fast via Shatabdi express doesn't mean they will build a new railway station with shatabdi as stoppage in every village.
 

icebags

Technomancer
they need restructure and pay cutting of useless resources. closure of govt organization is pretty bad thing. it reduces government's hold on the market. :|

at first, they should just get rid of the employees that don't care about the company.
 
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whitestar_999

Super Moderator
Staff member
they need restructure and pay cutting of useless resources. closure of govt organization is pretty bad thing. it reduces government's hold on the market. :|

at first, they should just get rid of the employees that don't care about the company.
Govt is supposed to hold critical sectors like defense,law & order,public healthcare etc not market.In case you don't know,when govt/bsnl held the monopoly,people used to celebrate(having a small ceremony,inviting neighbours etc) when they finally get a bsnl landline connection. Also in case you don't know,all the losses bsnl make comes out of yours(assuming you are working & earning) pocket in the form of taxes you pay. Would you keep giving loan to a person who never gives it back,if not then why should govt of India keep paying taxpayers' money to loss making govt companies?

P.S. Just in case you or somebody else comes up with the argument of "let govt make loss making psu profitable by management change etc" just remember almost no IIM topper contest elections to become minister(& that is what is required here) unless you think people who don't even know the difference between kilobyte & kibibyte would somehow make bsnl profitable when competing against pvt players managed by professionals(& no you can not make a govt owned organization completely run by professionals,in fact it is even law).
 

topgear

Super Moderator
Staff member
BSNL Revival Plan :

1. Reduced pay Grade / Less Salary per month.
2. Closure of all free connections
3. Reduce employee and their age ( making VRS mandatory starting from 50 yrs. )
4. Indeed change in management
5. Cutting all of free rides, free house etc. benefits of employees.
6. Change in employees attitude.

Now, the above can not be done ( as it will trigger different pay commission / salary rules ) and there will be no change but big talks ( unless reliance takes it over :D ). Govt. tried similar approach with AI but it failed for too much govt. control over operations.

BSNL giving connectivity to the last miles is more for Govt. official job rather than people. many govt. agencies / employees ( higher ranks ) rely on BSNL as they can not use private players connection for security and / or other reasons.

BSNL used to give 64KBPS @ Rs. 700 on 2014 and they used to call it broadband - but things changed after JIO came. So BSNL is no angel. Also previously I used to have BSNL evdo connection but they just shut it down along with their CDMA services at Kolkata.
 
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whitestar_999

Super Moderator
Staff member
BSNL giving connectivity to the last miles is more for Govt. official job rather than people. many govt. agencies / employees ( higher ranks ) rely on BSNL as they can not use private players connection for security and / or other reasons.
That is not a good enough reason economically as well as security-wise.If you are not using dedicated line & a secure VPN then it doesn't matter what ISP you use.USA doesn't have a govt controlled ISP but even a local FBI centre is probably a lot more secure data-wise compared to many big name organizations head offices in Delhi.
 
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