Department of telecommunications has raised serious concern over suggestions made by the Sam Pitroda committee for sweeping changes in state-owned Bharat Sanchar Nigam Ltd. The recommendations include divestment of 30 percent government equity in BSNL, reducing the company's workforce by a third, and cancelling the telecom equipment order for 93 million GSM lines, replacing it with network outsourcing deals. It is learnt that Communications and IT Minister A Raja is likely to write a letter to the Prime Minister's office (PMO) expressing his displeasure over the report. "The report by Pitroda offers a long-term solution. . . it does not address the existing issues and the concerns that may arise while following the long-term plan," a top functionary in the ministry told Media.
Asked why the ministry was raising objections when the telecom secretary himself was part of the committee, the official said he (telecom secretary) was not involved while preparing the report on BSNL. The functionary said the committee had not undertaken any groundwork to learn about the functioning of BSNL and the unions. It also suggested changes without even analysing the consequences of the suggestions. The functionary also made it clear that the proposals, though cleared by the BSNL board, would be difficult to implement without the support of the unions. "The unions were not consulted on VRS or the divestment. We don't see how they can be implemented without their support." The unions have been opposing the company's proposed initial public offer since it was approved in 2007.
Asked why the ministry was raising objections when the telecom secretary himself was part of the committee, the official said he (telecom secretary) was not involved while preparing the report on BSNL. The functionary said the committee had not undertaken any groundwork to learn about the functioning of BSNL and the unions. It also suggested changes without even analysing the consequences of the suggestions. The functionary also made it clear that the proposals, though cleared by the BSNL board, would be difficult to implement without the support of the unions. "The unions were not consulted on VRS or the divestment. We don't see how they can be implemented without their support." The unions have been opposing the company's proposed initial public offer since it was approved in 2007.
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