BDM writes to Hon’ble MoC for implementation of 3rd PRC in BSNL by waiving of the affordability clause in view of the continued upsurge in financial performance and BSNL’s successful role in development of Swadeshi 4G Stack :

BDM writes to Hon’ble MoC for implementation of 3rd PRC in BSNL by waiving of the affordability clause in view of the continued upsurge in financial performance and BSNL’s successful role in development of Swadeshi 4G Stack.

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BDM has submitted the following salient points for consideration of implementation of 3rd PRC for BSNL by doing away the affordability clause:

1] Involvement of BSNL in successful development of Swadeshi 4G (5G ready) technology making Bharat only the fifth country have its own End-to-end indigenous 4G stack. Making India Atmanirbhar in all domains is the vision of our Hon’ble Prime Minister and we take pride in being part of this divine initiative. 

2] BSNL has Strategic, Social & Economic Relevance in Telecom Sector and is rendering telecom services in a fiercely competitive market dominated by large Private Sector Telecom Service Providers. Its main role are as follows:

  • It addresses market imperfections in telecom sector;
  • It is functioning as a reference point for getting more reliable information for the sector regulator;
  • It is working as tariff balancer so as to ensure availability of reliable and affordable telecom service to the masses;
  • It is providing telecom services in the uneconomic, unviable, rural, far flung areas and difficult hilly terrains;
  • It plays vital role in providing connectivity during emergencies, natural calamities, war like situation etc. The recent examples being – providing the uninterrupted telecom services during the recent tense geopolitical situation at Border Areas and Covid-19 Pandemic.

3] BSNL is executing Government Projects of national importance like Bharat-Net, Network for Spectrum, LWE Areas Project and Comprehensive Telecom Development Plan for NE States, etc.

4] BSNL has been identified as ‘Strategic Sector’ CPSU in Telecom Domain, due to reasons mentioned above.

5] The financial position of BSNL has been on rising trend due to the continuous support and various initiatives taken by the Government of India under the active guidance of your good self and also because of the firm commitment shown by the employees of BSNL to fulfil these visionary objectives. This is very much visible from the recent statistics of BSNL as mentioned below:

Revenue statement (in Crores) for the last few years is as follows:

Financial Year (FY)2018-192019-202020-212021-222022-232023-242024-25
From Operations (in Cr)17,76117,88617,45216,80919,12819,33120,841
Total Revenue (in Cr)19,32118,90718,59519,05320,69921,30223,427
EBITDA (in Cr)-8,341-6,8791,1779441,5592,1645,395

While seeking the options for absorption in BSNL, Government gave the Erstwhile DoT employees assurances for better prospects. Had they not opted for absorption, they would have got the benefits of 7th CPC and now will get 8th CPC. Unabsorbed Government officers deployed in BSNL have already been granted the benefit of 7th CPC w.e.f. 01.01.2016 and they shall be now getting the 8th CPC also without any linkage to Profitability of BSNL.

It will be pertinent to mention that almost all of these unabsorbed employees getting the 7th CPC benefits have been working in BSNL only ever since BSNL was formed. Even they are being promoted against the vacant Posts of BSNL. It is our submission that the regular employees of BSNL should not face the financial loss just because they chose to obey the directions of the government. This disparity has been highlighted by the Hon’ble Parliamentary Committee of Public Sector Undertakings (COPU) with a recommendation to resolve this disparity to DOT/BSNL in its 6th Report submitted before 18th Loksabha.   

It is submitted that to make turnaround of a non-profitable CPSU working in stiff competition needs more motivated employees than an organization already running in profit in a lesser competitive market. Apart from above it is also worth mentioning that to remain vibrant and add to its competitive edge, BSNL has recruited about 36,000 employees with Technical and Professional qualifications. Pay revision is imperative to retain and motivate this young talent.

We would also like to submit the Recommendations of the 3rd PRC (Para 5 of the Executive Summary) wherein the committee has recommended that affordability conditions shall not be applicable to such CPSEs which are formed to perform specific agenda of the Govt. BSNL was formed in pursuance of specific agenda of the Govt of India to meet the objectives of the National Telecom Policy 1999. Therefore, the condition of affordability should not have been insisted in case of BSNL.