Outstanding dues with State Governemnt major reason for BSNL’s financial mess

 

Outstanding dues with Maharashtra Government establishment are perhaps single biggest reason for current financial mess that Bharat Sanchar Nigam Limited (BSNL) finds itself in today. Atleast this is the condition of Nagpur Telecom District, one of the better placed in terms of earnings, as nearly 44 crores are pending with State, stated Pancham Gaikwad, President, All India BSNL Employees Union, Nagpur Telecom District.

The amount is enough to sustain two months salaries of 1100 employees for atleast in Nagpur District. And from the total outstanding dues of BSNL, State Government's share alone is 28 per cent, that is single largest. State’s inordinate delay in clearing the due payment has made matter worse for the state run telecom company. The payment of salaries for the month of February has not been made owing to financial crunch that BSNL has run into in the competitive telecom sector.

Despite the huge outstanding and no word from State Government, BSNL has been magnanimous by providing phone connections to district administration throughout the country in run upto general elections. Said an BSNL officer this is their national duty to provide interruption free communication channel. Apart from that dues with private sector is also a worrying factor and BSNL needs to put in maximum efforts to recover the pending amount to ensure finances are aligned with services provided.

At Nagpur the maximum Rs. 14 crores are pending with State on whose orders all the panchayats were connected digitally under Bharat Net project. The project was rolled out by Central Government as part of its ambitious plans to digitally connect rural India and of the three companies given task, that is Power Grid, RailTel and BSNL, the telecom company performance was most impressive. In district alone 100 per cent GPs were done by BSNL in record time however since then State Government has not bothered to pay the user charges to BSNL.

Following the State, Central Government establishments are other major source of trouble for BSNL owing to pending bills. Private sector too has ran up huge outstanding but again major part is that of Wi-fi hot spots provided by BSNL. These wi-fi are useless now since unlimited data is provided by telecom companies on SIM, Gaikwad further pointed out while talking to The Hitavada.

Whenever BSNL officials raked up issue of pending bills, the Revenue officials were blunt in refusal saying whenever they get funds they would clear the outstanding bills. The default on part of State Government apart from hurting BSNL finances has also impacted Maharashtra State Electricity Distribution Company Limited (MSEDCL). Means, State hiding behind lack of funds to clear BSNL bills is also telling on finances of MSEDCL whose balance sheet is also in red, it is learnt.

As per the data available with The Hitavada, the most default in basic services sector wherein State Government owes Rs. 11,56,12,000, followed by 20,42,000 of Central Government, Rs. 17,000 of Defence sector, Rs, 83,461,000 of Private Sector. Under Leased Circuit head again State leads in default of Rs. 1,19,99,000, Central Govt.-74,833,000, Private-Rs. 12,31,05,000. In the GSM head State dues are Rs. 1,17,000, Central-Rs 1,42,000, Defence-Rs. 3,79,000 and Private-Rs. 1,83,13,000. Similarly under CDMA the State outstanding are-Rs. 1,87,000, Central-Rs 45,000, Defence-1,34,96,000 and Private-23,11,000.

Gaikwad termed MSEDCL action of disconnecting power supply at some of the BSNL units for non payment of electricity bills saying this as unjust, especially when State Government itself has defaulted on payment to company.

Central Govt advances Rs 500 cr for payment of salaries

Central Government has advanced Rs 500 crore for payment of salaries for the month of February to BSNL employees. Union leaders of various organisations held a meeting with BSNL Management wherein it was informed that Department of Telecom (DoT) has advanced the amount. The default of salaries caused an embarrassment to Central Government as the news went viral internationally.

However there is not much known about future road map about pulling out BSNL from deep woods. BSNL Management too have run out of strategies at present owing to precarious financial position of the company. So employees do not know whether regular salaries will continue, means whether in month of April they will again have to wait endless is not known at present.But during the March end the BSNL revenue inflow increased owing to payment of leased charges, it is paid annually. Daily revenue inflow of BSNL in the country is Rs 45 crores so that could provide some respite in the meantime.

Mah Circle freezes financial powers of district units

Maharashtra Circle of BSNL has frozen financial powers vested with district units, saying not a single rupee can be spent without its authorisation. The communication to this effect was communicated to all the BSNL Telecom Districts in the State. The development comes against backdrop of current state of precarious financial situation of the state run telecom company.