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Ravi Shankar Prasad hints on Reducing of BSNL Employees? We want BSNL to survive on issue of BSNL Crisis raised in the Parliament

In response to the allegations, Ravi Shankar Prasad said: "We want BSNL to survive and function effectively and, with regard to its budget, we are examining the issue."

Highlights:
  • Ravi Shankar Prasad blames the tough competition and high cost of employees for the crisis in the telecommunications PSU
  • The Union's telecommunications minister, Ravi Shankar Prasad, has accused the tough competition, the high cost of employees and 4G services due to the poor financial conditions of BSNL and MTNL.
  • The destinations of hundreds of thousands of BSNL employees hang in the balance, as the public sector company (PSU) is very limited in cash
Ravi Shankar Prasad hints on Reducing of BSNL Employees?
The telecommunications minister accused tough competition, the high cost of employees and 4G services due to the poor financial conditions of BSNL and MTNL. Several parliamentarians in Parliament have raised the issue of the current BSNL crisis: their poor financial situation and their network problems. The Union's telecommunications minister, Ravi Shankar Prasad, reacted to the current crisis at state-owned telecommunications service provider Bharat Sanchar Nigam Limited (BSNL).

The fate of the hundreds of thousands of BSNL employees is at stake, as the public sector company (PSU) is very limited in cash. The telecommunications minister accused tough competition, the high cost of employees and 4G services due to the poor financial conditions of BSNL and MTNL.

In a written reply to Parliament, Ravi Shankar Prasad stated: "For BSNL and MTNL, the tough competition in the mobile segment, the high cost for employees and the absence of 4G services (except in some places for BSNL) on the market data-centered telecommunications are eroding its competitive strength. "

Ravi Shankar Prasad replied that "at the time of the attribution of the 4G, the government PSUs were not involved, the feeling was that it could give the impression that the government supported the PSU and did not provide a level playing field. In view of the competition and market situation, we can explore this option ".

Ravi Shankar Prasad also noted that the total cost for MTNL and BSNL employees far exceeds the total cost of employees for private telecommunications companies. The cost of the employee for BSNL is 75.06%, while for MTNL the cost of the employee is 87.15% of the total income. The cost of employees for private telecommunications companies varies between 2 and 5 percent of total revenues. "We want to take care of the employees and reactivate the supply units because, for fair competition on the market, it is important to have these supply units".

BSNL and MTNL employees, on the other hand, rejected the statement, saying that it is unfair to mention the cost of employees to the company, since private players can outsource their work assignment.

Several parliamentarians in Parliament have raised the issue of the current BSNL crisis: its poor financial situation and its network problems.

In response to the allegations, Ravi Shankar Prasad said: "We want BSNL to survive and function effectively and, with regard to its budget, we are examining the issue."

Ravi Shankar Prasad told in the Parliament that to prepare a restructuring plan for BSNL and MTNL the Ahmedabad Institute of Management and Deloitte a private consulting firm were hired.

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