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Addressing the BSNL liquidity crisis should be a priority for the government

The PSU has delayed salaries and payments to its suppliers. Not only is the delay in salary payments what worries Bharat Sanchar Nigam Ltd, but also the outstanding fees for suppliers, which threatens to influence the growth of public sector commitment.

Addressing the BSNL liquidity crisis should be a priority for the government
According to leading sources, BSNL has delayed payment to some of its suppliers due to the liquidity crisis. "If BSNL cannot pay for its equipment or service providers, how can it place orders for future requirements? The new government must address this issue as a priority if it wants to avoid a serious crisis," a situation-aware executive said . In an internal note sent by the BSNL financial director to all the circles, the problem.

"The telecommunications sector requires an intensive use of capital, where even to stay in business or to ensure business sustainability, service providers must invest in new technologies. The cumulative effect of all this has caused a liquidity crisis "stated the note of 16 May 2019.

BSNL had recently delayed the payment of salaries to employees for a month. In addition, some providers and service providers have written to request the release of pending payments.

Market observers have said that the Center should take immediate measures to reactivate BSNL if it wants to reach the goal of reaching 100% teledensity in rural areas and keep the telecommunications services accessible to the common man.

While private operators have conquered the market with an investment of billions of dollars and profitable operations, consumers need a public sector entity like BSNL to counteract a possible monopoly deal that could arise due to the current situation financial market. the sector.

To avoid further destruction of value, the Center must intervene to do three things. First of all, get rid of all the company-owned land parcels and invest the income in technology and equipment to make BSNL on a par with private players. Secondly, implement the proposals of the Sam Pitroda committee, in particular those related to the reduction of personnel costs and, finally, place different companies in different vertical sectors, said an expert in the telecommunications sector.

BSNL is, however, optimistic that it will be reversed.

According to the internal note, "the BSNL management is edevoring every effort to alleviate the liquidity pressure. It is expected that normality in the liquidity position will be restored for the next quarter of the financial year."

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