Rules may spoil BSNL, MTNL's asset monetisation plans: Prasad

Prasad added that some local support will be required to ensure that such plans go through smoothly and pointed to local BJP MP Kirit Somaiya as someone who can help.

Published: 28th May 2016 10:35 AM  |   Last Updated: 28th May 2016 10:35 AM   |  A+A-

By PTI

MUMBAI: Even as state-run BSNL and MTNL look at monetising their realty assets, Telecom Minister Ravi Shankar Prasad today said the precondition of using the land for telecom infrastructure at time of allotment may prove to be a hurdle.

"We also have some limitations emanating from the fact that the land was allotted specifically for telecom infrastructure. What do we do?" he said, speaking at the loss-making MTNL's technology centre in an upmarket area of central Mumbai.

Prasad added that some local support will be required to ensure that such plans go through smoothly and pointed to local BJP MP Kirit Somaiya as someone who can help.

He said a high-level committee has been formed at the departmental level to look into how to utilise the excess land holdings of MTNL and BSNL.

"I would like MTNL's revenue to increase, not only in terms of improving connectivity and consumer base, but also in optimum utilisation of their resources and infrastructure," Prasad said.

He further said the government has empowered the boards of these companies to take the right decisions. Attacking the previous UPA regime, he said MTNL, which had reported a profit of Rs 10,000 crore when the Vajpayee government demitted office, was reeling under losses of Rs 8,000 crore at the end of a decade of Congress rule.

The minister, who was in the city to speak about the achievements of the two years of the Narendra Modi government, said PSUs face a slew of challenges in their working and he would love to see a turnaround.

The challenges for a PSU include facing flak from a minister, answering Parliament questions, facing an aggressive media, scrutiny by CBI and CVC as well as the judiciary and sticking to the L1 system under which the lowest bidder in a tender wins contracts, he said.

He said the employees have to come together and collectively ensure improvement in the financial conditions of these units.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

facebook twitter whatsapp