Govt. To Consider Capital Infusion In BSNL

There has been the continuous efforts, to save the public sector telecommunications company Bharat Sanchar Nigam Limited (BSNL), the government is planning to take steps to push for technology upgradation and also induct more capital into BSNL in order to make it more competitive.

Ravi Shankar Prasad, Communications Minister told the Rajya Sabha that the government is taking steps to make BSNL more competitive and these include upgradation of technology and capital infusion, Rajya Sabha was informed on July 18 and steps are being taken to make BSNL more competitive.

BSNL spends up to 75% on paying salaries, which is way BSNL is having the loss. Whereas, the private companies have very low employee cost. With just 10.72% market share on March 31,2019, including 9.96 per cent in mobile wireless technology and the most popular 4G service is not yet part of the offerings by BSNL. It has now been announced that the 4G service will be introduced with the funds to be sanctioned by the government and there are certain legacy issues and the government has to bite the bullet if the telecom company is to survive.

There had been reports earlier of the Union Cabinet having approved a proposal to infuse around Rs 74,000 crore into both BSNL and MTNL, the two public sector telecommunications companies in order to revive their fortunes.

“To ensure stability in the Telecom sector, one PSU is very important,” Prasad told the house, adding that it must be noted that India has the cheapest mobile and data rates across the world.

Sanjay Shamrao Dhotre, Minister of State for Communications said, the government is considering capital infusion, including equity infusion in the public sector telecom company. He further said, the government is also working out introduction of 4G services in the country, after members expressed concern over lack of technology upgradation by the BSNL.

While members were critical of the BSNL functioning, BJP member from Uttar Pradesh Hanath Singh Yadav said the services are so poor that when he tried to call someone in the other room in his house, the call went to Siliguri.

Meanwhile, in his written reply, the minister said, “Bharat Sanchar Nigam Limited (BSNL) has informed that no proposal to lay off over 54,000 employees has been approved by BSNL.”