Despite Rs 38,000 Crore Loss, BSNL Will Not Be Privatized; Has No 5G Plans
Despite huge losses, Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) won’t be privatized, said Sanjay Dhotre, minister of state for communications, electronics, and information technology.
Read on to find out more about this development…
BSNL In Loss Since 2017!
For the past 3 years, BSNL has incurred losses consistently.
On Wednesday, Dhotre pointed out that BSNL incurred Rs 7,993 crores loss during the FY 2017-2018. BSNL has likely registered Rs 14,904 crores loss FY 2019 and Rs 15,500 crores loss in FY 2020.
The government had announced a revival plan for BSNL and MTNL in October 2019 of nearly Rs 70,000 crore. This comprises the Voluntary Retirement Scheme (VRS), allotment of the 4G spectrum, increasing the sovereign guarantee bonds, and monetization of assets.
Of this, the VRS scheme has already been launched for people above the age of 50 whereas 4G service is still under work. On October 1, the BSNL unions are set to observe a Black Day citing the denial of 4G technology to BSNL.
BSNL Has No Plans Of Privatization Nor of 5G Services!
Recently, the Government of India had said that it is working on strategic divestment of over 20 central public sector enterprises (CPSEs), their subsidiaries, and units.
In the Lok Sabha Sridhar Kotagiri asked the Centre whether it “proposes to lay down any plan to privatize BSNL and MTNL.”
On this, Dhotre responded, the “government has no plan to privatize BSNL and MTNL.”
The auction for the 5G spectrum was going to happen this fiscal year but it seems to have been pushed to 2021.
On 5G services, Dhotre said that the state-run operator has “informed that it has not yet planned for introducing 5G services in its network.”