NEW DELHI: In what may come as a relief to the loss-making public sector telecom company BSNL, the Central government on Wednesday said that the Institute of Management, Ahmedabad, and private consulting firm Deloitte have been engaged to prepare a revival/restructuring plan for BSNL and MTNL.
On steps taken to improve BSNL’s position, Union Telecom Minister Ravi Shankar Prasad spoke about upgrading infrastructure, which includes the introduction of 4G services. “Pursuant to their (IIM and Deloitte) recommendations and approval of respective Boards, a comprehensive revival plan for BSNL and MTNL is under preparation,” Prasad said in a written reply in the Lok Sabha.
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The financial health of the two PSUs have worsened so much in last few years that BSNL doesn’t have enough funds to clear the monthly salaries of its employees. Many have blamed the government for the crises at the PSUs.
Prasad said stiff competition in mobile segment, high employee cost and absence of 4G services (except in few places for BSNL) are eroding the competitive strength of BSNL and MTNL.