BSNL employees’ union asks DoT to clear dues of Rs 30,000 crore: Report

State-run Bharat Sanchar Nigam Limited’s (BSNL) employees’ union has shot off a letter to new telecom minister Ashwini Vaishnaw to ensure that the Department of Telecommunications (DoT) clears dues of Rs 30,000 crore to the financially ailing telco, according to a report by The Hindu.

“The DoT owes the BSNL around Rs 30,000 crore…we shall be highly obliged… if you could see that this amount is refunded to the BSNL at the earliest to enable the company to perform with more vigor and also take care of its employees’ needs,” the Bharatiya Telecom Employees Union (BSNL), an affiliate of the Bharatiya Mazdoor Sangh, said in a letter dated July 10, 2021.

As per the letter, this amount includes a viability gap funding of Rs 13,789 crore for rural telephony, about Rs 8,300 crore for surrendered Wimax and CDMA spectrum, and Rs 1,051 crore for the BharatNet project.

The union also highlighted that poor marketing methods have resulted in the loss of revenue and market share for the stressed telco.

In October 2019, the Cabinet had approved a four-step revival package of Rs 69,000 crore that included allocation of 4G spectrum, assets monetisation, voluntary retirement scheme (VRS), and the merger of Mahanagar Telephone Nigam Limited (MTNL) with BSNL.

Nearly 50% of the workforce of the two telecom companies (BSNL and MTNL) opted for voluntary retirement, reducing the wage bill by almost half.

However, the media recently reported that both BSNL and MTNL are seeking to rehire employees who had opted for the voluntary retirement scheme (VRS) after feeling the heat of operational losses.

The survival of BSNL, which trails behind Reliance Jio, Bharti Airtel, and Vodafone Idea, depends on the launch of 4G services. It expects 4G rollout within 10 months of successful completion of trials by homegrown companies, whereas if the Proof of Concept (PoC) is completed within four months, the network could be rolled out after 14 months from the said date.

Otherwise, the telco believes the specified rollout timelines would also get extended.

PK Purwar-headed BSNL’s 4G network launch though has been marred with controversies involving local companies and multinational rivals such as Nokia relating to 4G tender conditions.