BSNL struggles on monetary fund; Approaches PM to intervene
State-owned telecom firm Bharat Sanchar Nigam Limited (BSNL) is once again scrambling to run its monetary operations with an outstanding liability of nearly 13,000 crore.
On June 18, the All India Graduate Engineers and Telecom Officers Association (AIGETOA) in a letter urged the Prime Minister to facilitate budgetary support to BSNL to help address liquidity crunch that is adversely impacting operation and maintenance of services at the organisation. The association emphasised on a performance-based mechanism for BSNL employees so that good performers can be rewarded and non-performers be made accountable.
It may be noted that the distressed company has been dealing with massive debt issues and had failed to pay the February salaries to around 1.74 lakh employees and is once again groping to pay Rs 850 crore worth salary for June. The issue of salaries not being paid was raised during the Zero Hour by Congress Rajya Sabha member Ripun Bora on Saturday. He asked the government to bail them out and made a case for recapitalisation of the two PSUs.
The company is undergoing a major cash crunch due to the price war with private companies. As per the report of Kotak Institutional Equities, the accumulated operating losses of BSNL were over Rs 90,000 crore in December 2018, says a report.
The telecom sector has been infected with falling tariffs, eroding profitability and towering debt, in the face of stiff competition triggered by disruptive offerings of Reliance Jio owned by richest Indian Mukesh Ambani.