StocksMarket.in

BSNL trying to pay employee dues by Diwali, says CMD PK Purwar: Report

October 17
12:56 2019

Bharat Sanchar Nigam (BSNL) Chairman and Managing Director PK Purwar said the company is aiming to clear its 1.76 lakh employees’ September dues before Diwali, The Economic Times reported.

Earlier in October, the public sector telecom’s employee unions threatened a hunger strike on October 18 if salaries were delayed over the festive season.

Purwar said the Rs 850 crore pay-out would be given before Diwali “from our own resources on accruals”.

While BSNL generates Rs 1,600 crore in revenues per month, a major chunk of this is used for operational and statutory payments. This has caused the salary backlog. The company also posted a net loss of Rs 13,804 crore in FY19.

Besides employee salaries, the company also has to clear vendors’ dues from the Rs 1,600 crore.

BSNL’s plan to raise funding from banks on government guarantees has also not panned out yet, the report quoted a source as saying.

On October 11, it was reported that the Finance Ministry favoured reviving BSNL.

The Department of Telecommunications Secretary Anshu Prakash confirmed the development and added that a group of ministers headed by Home Minister Amit Shah had approved a revival plan proposed by the DoT.

The DoT proposed Rs 74,000 crore revival plan, which includes Rs 29,000-crore payout for voluntary retirement scheme, Rs 20,000 crore for 4G spectrum and Rs 13,000 crore to fund Capex for 4G services.

The plan estimated that, with the revival package, BSNL could become profitable by the financial year 2024.

A committee headed by Principal Secretary PK Mishra has also asked a high-level panel looking into the revival of MTNL and BSNL to explain if the two telecom PSUs can be turned around and how.The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .

Related Articles

Archives