BSNL Has No Money To Pay Employees, All You Need To Know About The Company's Crisis

12 Oct 2019 12:13 PM GMT
BSNL Has No Money To Pay Employees, All You Need To Know About The Companys Crisis
Image Credit: Pixabay, India Today

State-run operator Bharat Sanchar Nigam Ltd has said there is no plan to close the company and it will continue to offer telecom services in the country.

The company’s statement comes two days after the Financial Express newspaper reported that the finance ministry has suggested that the sick PSU needs to be closed down.

“Recently there has been an article published in the media about closure of BSNL. In this regard, it is clarified that there is a plan under active consideration for the revival of BSNL by the government by giving suitable package in terms of VRS and 4G spectrum and allowing monetisation of assets available with BSNL,” the state-run operator said in a statement on Thursday.

Company Demands Revival Plan

The doubts about the company’s shutdown surfaced when for the first time in its history, BSNL delayed its salaries for the month of February. The trend of delay in disbursement of salaries continue to date.

The company has been making losses continuously since 2009-10 and was declared “incipient sick”.

With over 1.70 lakh employees, BSNL suffered an estimated loss of Rs 14,000 crore in 2018-19. Its total loss over the past four years has been close to Rs 32,000 crore.

The employees of the ailing telecom company have urged PM Narendra Modi to approve a bailout revival package to save the company.

BSNL has asked the government for help by converting its existing debt into a sovereign guarantee, a pay revision and a voluntary retirement scheme (VRS) apart from allowing the state-run firm to get 4G spectrum across India through equity infusion of Rs 7,000 crore.

The company said that the proposed VRS package could be funded over 10 years. Sebastian’s letter suggests that BSNL employees are confident that the company can be revived.

BSNL has also requested the government a loan of Rs 2,500 crores to stay afloat.

Speaking to Business Standard, K Sebastian, General Secretary, Sanchar Nigam Executives Association, said he recently wrote a letter to PM Modi and urged him to approve the bailout package without delay.

The news comes amid announcement by both BSNL and MTNL Unions planned a nationwide strike as their salaries have been delayed.

Also Read: 10,000 People To Lose Jobs As HSBC Initiates Cost-Cutting Drive

Suggest a correction

    Help Us Correct

    To err is human, to help correct is humane
    Identified a factual or typographical error in this story? Kindly use this form to alert our editors
  • *
  • *
  • *
  • Form Submitted Successfully
    Error in submitting form. Try again later


The Logical Indian

The Logical Indian


The Logical Indian

The Logical Indian


Next Story