BSNL-to-get-additional-subsidies-compensation-for-WiMAX-operations

Apart from the Pitroda report, this panel has also endorsed a long pending demand of BSNL that it needs to be adequately compensated for its loss making operations in rural India, especially its landline businesses there. BSNL has maintained that its landlines in rural India, a bulk of which it is forced to maintain on account of social commitments, is bleeding it to the tune of `8,000 crore annually.

“There is a huge burden of legacy systems and manpower in BSNL. The burden on BSNL is further compounded by sustenance of loss making services emanating from rural as well as other socially desirable activities undertaken by BSNL towards fulfilment of the government’s social obligations. BSNL may not be able to sustain this burden on its own in a fiercely competitive market. This burden needs to be assessed afresh, separately keeping in view the provisions of NTP 99 as well as other government policies and BSNL compensated suitably,” this panel said in its report to the telecoms department.

Controversies related to its tendering process has resulted in BSNL being unable to place any orders for telecom equipment over the past four years, allowing private companies to steal a march over the PSU, and also resulting in the telco posting a loss of Rs 1,822.7 crore in the year ended March 2010, the first loss in the company’s history.
The telco’s employee unions say that western vendors such as Nokia Siemens , Ericsson and Motorola , in collusion with some executives in BSNL’s top management, as well as the political establishment, had resulted in the telco’s dismal performance over the years, a charge denied by these equipment companies.

 Our comments:  Why BSNL has to post loss? Why no bonus to all after 33 years? Because of BSNL's commitment for maintaining rural services.  Former CMD Shri Kuldeep Goyal wrote to DoT that the govt. must compensate BSNL for maintaining rural services. That is bearing fruit.  Tthe govt. is thinking of compensating rural services.  If BSNL abandons rural services, surely BSNL will be in profit.
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