Insta
Loss-Making BSNL Seeks Immediate Funds Infusion From Government; Says It Is “Nearly Impossible” To Continue Operations
Swarajya Staff
Jun 24, 2019, 04:28 PM | Updated 04:28 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Bharat Sanchar Nigam Limited (BSNL) has requested the government for an immediate cash infusion as it is “nearly impossible” to run operations, The Times of India reports.
The state-owned teleco said that the Rs 850 crore salary liability for June as outstanding liabilities of around Rs 13,000 crore have made its business “unsustainable”.
“The gap between monthly revenues and bare expenses to continue operations as a going concern has reached to a level where continuing with the BSNL operations would be nearly impossible without immediate infusion of adequate equity,” GM at BSNL’s corporate budget and banking division, Puran Chandra wrote.
In the letter, sent to the joint secretary in the telecom ministry, BSNL sought the centre’s advice on the next “course of action” to decide the fate of the loss-making corporation.
The government was unable to provide revival roadmap despite talks of restructuring and has also dismissed suggestions to close the PSU down, considering its “strategic” importance.
BSNL has been in a downward spiral for a few years due to the high employee costs, poor management functioning, interference from the government and delay in modernisation. BSNL is still waiting for 4G spectrum when the government and other telecos are preparing for 5G spectrum auctions.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.