By M R Patnaik
The primary goal of the public sector is to make the country self reliant, in providing essential services and benefits to citizens. Profit is not the motive; the focus is on ensuring equitable access, promote economic and social development, protect the interests of weaker sections, providing a strong foundation for progress.
The PSUs provides employment to millions, making them a cornerstone in the nation’s overall progress. Post independence, the RBI was nationalised on Jan 1, 1949. A total of 14 major private banks were nationalised in July 1969, followed by five more in April, 1980. The coal sector was nationalised in 1971-72.
The 1991 reforms opened country’s economy to the world. Hitherto govt owned telecom sector opened for entry of private TSPs, aiming to achieve faster tele density.
To ensure level playing field for private TSPs, BSNL was carved out from DOT in October 2000, thus BSNL is not an established PSU from scratch. Post formation, all the middle and lower level staff were technically absorbed into BSNL, but majority of direct recruits at top management did not opt for PSU service, as a result till now BSNL is managed by these officers on deemed deputation with govt mindset.
Naturally, there is a mismatch with TSPs, in human resource pattern and motivation. Political and bureaucratic apathy and indecision, budgetary constraints, lack of accountability, capacity augmentation not meeting demand, are the other mismatches that engulfed BSNL. Thus, in just a decade of its formation, BSNL having no level playing field with private TSPs, seen losing its market share gradually.
BSNL virtually lags a decade behind private TSPs in 4G launch. In 2022, PM desired, to go for indigenous 4G equipment, upgradable to 5G under GOI’s Atmanirbharata. Consortium of TCS, CDOT and Tejas Networks, supposed to supply equipment for 100,000 sites beginning Aug 2023, which is not yet materialised.
Exuberance at BSNL gaining 68 lakh customers during four months preceding Nov 2024, and RJio losing 165 lakhs during the same period is only cosmetic, as Rjio with 46 crore total connections tops with 39.9% market share, while BSNL at 9.24 crore customers stands distant fourth with market share of 8.05 percent.
The much hyped multiple financial packages given to BSNL in last three years, is mostly non-cash-based and the company received only Rs 21,000 crore in cash and remaining for assets in the form of 4G and 5G spectrums, settlement of AGR dues, employee VRS package, sovereign guarantee for bonds, asset monetisation over four years etc.
Jyotiraditya Scindia, MOC said in a recent interview that India is now the fifth nation globally which has its own 4G stack, and BSNL will complete its rollout of 1 lakh 4G towers by mid-2025. He further said that the developed 4G stack can be exported to other countries in need of this technology.
During third week of December 2024, Parliamentary Committee on Public Undertakings, advised BSNL to consider a multi-pronged strategy, including enhanced collaboration with Indian technology developers and global experts to expedite the validation and refinement process of indigenous 4G technology it is deploying. Further, the Committee feels that BSNL may explore partnerships with foreign technology providers for temporary integration, which could help bridge the technology gap while the indigenous solutions reach maturity.
Given the strong political will, the present government can do wonders. To narrate a few, some of India’s key defence production PSUs that play a crucial role in making the country self-reliant include BEL, Bharat Dynamics, BEML and HAL. Cochin Shipyard, Gardenreach ship builders as ship building and repair PSUs are running with flying colours. Energy and power sector companies namely ONGC, Oil India, BPCL, HPCL, IOC, Coal India, Powergrid too doing well. All these PSUs have grown anywhere between 5X to 10X in value in the last 10 years.
Then, why not BSNL flourish? Because the country’s strategic interests outweighs the political compulsions. With the sabotage and surveillance caused by technological blitzkrieg of this digital age looming large, BSNL cannot be listed and should continue as a pure govt entity.
Just to mention the cyber attacks reported in public domain during last quarter of 2024
1) In September 2024, thousands of handheld pagers and walkie-talkies intended for use by Hezbollah exploded simultaneously across Lebanon and Syria in an Israeli attack, killing 42 people, and wounding about 3,000.
2) It is reported in November 2024, Chinese intelligence named “Salt Typhoon” by Microsoft, could breach innermost workings of the US telecom system, wherein hackers able to listen telephone conversations and read text messages of higher rung Americans including Donald Trump and JD Vance.
3) About 916 cyber crime financial cases involving Rs 1229 crore, reported in Andhra Pradesh alone in 2024, an increase of 34% over 2023. News is in circulation that BSNL aiming to trim the workforce by another 35 percent with VRS 2.0, and DOT seeking finance ministry approval for Rs 15,000 crores.
Instead, DOT should ignite employee morale to enhance operational efficiency. Also, identify the cream among the well trained manpower, up skill them to deploy as commando force to tackle cyber criminality wherever needed. While the rulers at the helm (Worked without opting for PSU service) are enjoying the benefit of 7th CPC pensionary benefits post retirement, the ruled (employees who have opted with trust) are not given pension revision since 2017, on the technical pretext that PSU running on loss, is grossly injustice. Government should honour its commitment of extending pensionary benefits on par with CG employees, given to employees at the time of formation. This will also help in gaining the trust of work force for future corporatisations/disinvestments of PSUs.
Whether SILVER JUBILEE year for BSNL coinciding with DIAMOND JUBILEE OF Indian Republic, see turnaround is a wait and watch.
(Disclaimer: The opinions expressed in this article are those of the writer. The facts and opinions expressed here do not reflect the views of ETV Bharat)
