Cash-strapped BSNL misses salary deadline again

Cash-strapped BSNL misses salary deadline again
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Kottayam: The ailing state-owned telecom operator Bharat Sanchar Nigam Limited (BSNL) has failed to disburse salary to its employees for the second straight month.

None of the BSNL circles, including Kerala, has disbursed salary. The financial situation is so grim that there is no confirmation on when the salary would be disbursed.

State-owned Mahanagar Telephone Nigam Limited (MTNL), which provides telecom services in Mumbai and New Delhi, has also not disbursed salary for two months.

The contract workers with the cash-strapped BSNL, including the ones in Kerala, have not been getting their pay for six months. The BSNL employees in the state are in for a dull Onam as they await the monthly payout.

The revival package for the BSNL, which is facing acute financial crisis, is likely to be implemented by third week of September.

Procedures would be started to transfer the assets and liabilities of the BSNL and MTNL to a new company. A Special Purpose Vehicle (SPV) would also be set up for this.

The Prime Minister's Office (PMO) had approved the proposals in the revival package put forth by Union Minister Amit Shah-led group of ministers. Attempts are on to acquire 4G spectrum, a key component of the revival package.

The legal hurdle in giving permission for the 4G spectrum is one reason that is delaying the implementation of the proposals.

The BSNL did not take part in the auction for the 4G spectrum. The Supreme Court had instructed that natural resources should be allocated only through auction. The BSNL requires about Rs 14,000 crore to acquire 4G.

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