BSNL Has No Money To Pay Salary For 1.76 Lakh Employees; Says Impossible To Run Operations
The scenario at BSNL looks like it has been taken straight out of a movie without a happy ending. Things are going in a downward spiral for the telecom operator and the condition has worsened to an extreme level that BSNL has asked the Government for help.
BSNL – Bharat Sanchar Nigam Ltd, has seen its share of grave problems over the past few months, from being unable to pay their employees, to employees going on strike. The company did try to come up with a few solutions, but hasn’t found much success yet.
And now the state-owned telecom operator has turned to the Government for a way out of this turmoil.
What is going on at BSNL? Read on to know the details!
BSNL Writes To The Government For Help
BSNL has written to the Government explaining their dire straits and asked for monetary assistance to ensure that their daily procedures are not hindered. Apparently, the operator is finding it “nearly impossible” to continue operations.
Also, external payments of Rs. 13,000 crore, which is still lesser than the other telecom operators have made the business “unsustainable.” Airtel has a debt of Rs 1.13 lakh crore, Vodafone has a debt of Rs 1.2 lakh crore, and the combined debt of Jio is Rs 2 lakh crore.
Puran Chandra, senior general manager at BSNL’s corporate budget and banking division said in a letter to the joint secretary in the telecom ministry, “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.”
The joint secretary is also a member of the board of BSNL.
As reported by one of BSNL’s suppliers and creditors, the company “just doesn’t pay. It is a task to recover our dues.”
BSNL’s Woes and Worries
BSNL did try to revive the dying state of conditions by making plans for 4G, debt reduction, and introducing VRS plans for employees, but that plan hasn’t seemed to pan out much for the telecom operator.
While previously, the Government had admitted to the unmanageable situation of BSNL, and there also was a possibility that it would be run by private brands, but that seemed to go nowhere.
BSNL has a workforce of 1.76 lakh, and has failed to pay them time and again. The telecom operator had also discontinued paying the contract workers, and to bring a decrease in the hiring of such employees.
BSNL has faced fierce competition from other telecom operators such as Jio, Vodafone Idea, Airtel, and its consumers have scaled down by half since 2004-05, and is around 10% as of now.
Has BSNL aged, and should it be shut down? Let us know in the comments section right below!