Friday, May 30, 2014

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T o

 Hon.Shri  R a vi  Shankar Prasad
H o n ' b l e M i n i s t e r f o r C o m m u n i c a t i o n s & I T ,
Sanchar Bhawan
 , 2 0 , A s h o k a R o a d ,
N e w D e l hi-110001

R e s p e c t e d Sir

Hearty Congratulations and Best Wishes to you on your assumption as the Minister of Communications
from the Forum of BSNL Unions and Associations, representing the more than 2,50,000 non-Executives
and Executives working in the PSU Telecom Company, BSNL ! We warmly welcome you in your new

We are fully aware that you will be extremely busy in your new assignment. But still we feel that it will
be only appropriate that we bring to your kind notice some of the important issues faced by BSNL, a
fully government owned company, which is facing serious crisis in growth and in providing a better
service to the people. We seek your full support and initiative to strengthen and Revive BSNL and to
improve its service to the nation.

1 .

H o n o u r i n g o f a s s u r a n c e s g i v e n t o B S N L a t t h
e t i m e o f i t s f o r m a t i o n i n 2 0 0 0 .
The NDA Government assured at the time of formation of BSNL in October 2000 that in order to provide
Telecom services on reduced rental in the rural areas of the country, the BSNL’s deficits will be
compensated by paying Access Deficit Charge (ADC) collected from the private telecom operators. It
was also stated that though BSNL has to pay the license fee to government, it will be reimbursed.
Another assurance was that funds will be provided from USO Fund to compensate the loss in providing
service to the rural and remote areas which are loss making but essential to implement the
government policy of providing universal service.
After a few years, the UPA government has stopped all these financial assistance, except USO Fund, but
which is only a token amount. We request that the assurances given at the time of formation of BSNL be
honoured and continued to be implemented. In lieu of ADC, which has been discontinued in July - 2011,
an amount of Rs. 1,500 crore for 2011 – 12 and Rs. 1,250 crore for 2012-13 was recommended by TRAI
and allotted by DOT from USO Fund. While the former amount has been paid, the amount, Rs. 1,250
crore is yet to be paid. This may be paid early.

2 .

P r o v i d e F i n a n c i a l A s s i s t a n c e t o B S N L
BSNL is in a financial crisis at present with an accumulated loss of more than Rs. 25,000 crore for the last
four years. It requires fund for development and expansion. The loss has been due to the continuous
loss in revenue from the earlier Rs. 40,000 crores to about Rs. 26,000 crore this year. Sufficient
equipments have to be purchased for expansion, for which capital is necessary.

3 .

R e f u n d o f S p e c t r u m C h a r g e s p a i d b y B S N L t o g o v e r n m e n t
More than Rs. 18,500 crores have been paid by BSNL to the Government towards 3G and BWA
spectrum charges for providing pan India services. But at the same time the private companies are
allowed to provide pan India services even with license in a few circles, the amount for which comes to
less than one third of the spectrum charges paid by BSNL. While BSNL was not allowed to bid in the
auction, it was arbitrarily compelled to pay the maximum bid price at all India level. As the BWA spectrum allotted for BSNL was not suitable to the latest technologies (4G etc.), it has been
surrendered. Although it was assured that the spectrum charges will be refunded for the spectrum
surrendered, it has not been paid so far.

It is requested that the entire amount paid by BSNL towards spectrum charges be refunded. It is also
requested that considering the fact that BSNL is a fully state owned company, spectrum be allotted free.

4 .

F o r m a t i o n o f n e w / s u b s i d i a r y c o m p a n i e s d i s i n t e g r a t i n g B S N L b e s t o p p e d .
The UPA Government formed another company called BBNL from BSNL for providing Broadband
services in the Panchayats etc. There is no need for a separate company as BSNL itself has been
providing these services. It has also proposed formation of a Tower Company, by bifurcating BSNL. It is
also understood that there is a proposal to form a Cable company utilising the huge cable/ optical fibre
cable infrastructure of BSNL. These will completely result in disintegration of BSNL and ruin its financial
strength, which is at low ebb even now. These proposals may be dropped and BSNL be allowed to
function without carving out new companies out of it.

5 .

F i l l i n g u p t h e p o s t s o f D i r e c t o r s o f t h e B S N L B o a r d .
Two posts of Directors viz. Director (Finance) and Director (HR), are vacant for many months. For the
efficient functioning of the company, these posts are required to be filled up early.

6 .

P e n s i o n c o n t r i b u t i o n o n t h e b a s i s o f t h e a c t u a l p a y i n s t e a d o f t h e m a x i m u m o f t h e p a y s c a l e

At the time of corporatisation in 2000, it was assured by the Government that the DoT employees who
will be absorbed in BSNL will be paid pension by the government, since they were government
employees. Accordingly, pension contribution is being paid by BSNL to Government for all BSNL
absorbed employees till retirement on the basis of the maximum of the IDA pay scale of the employee
concerned. According to the Government orders, pension contribution is to be paid only on the basis of
the actual pay of the employee while on deputation etc. But BSNL is compelled to remit an extra huge
amount since it is directed to pay the contribution on the maximum of the pay-scale. This may be
changed in to payment on the basis of the actual pay of the employee.

8 . B S N L / M T N L s e r v i c e s t o b e m a d e m a n d a t o r y f o r c e n t r a l / s t a t e / P S U e s t a b l i s h m e n t s

As in the case of Air India, BSNL/MTNL services should be made mandatory for all the establishments in
Central/State governments and their PSUs.

9 . A b s o r p t i o n o f I T S O f f i c e r s

The lack of professional top management is one of the reasons for the inefficiency in BSNL. The
permanent deputation of ITS officers in BSNL should be put an end to and sufficient number of
professionals be recruited to run this organisation.

1 0
. 7
. 2 % I D A m e r g e r f o r t h
e B S N L P e n s i o n e r s

BSNL employees have been granted 78.2% IDA merger fixation notionally w.e.f. 01-01-2007 and actually
from 10-06-2013, the date on which DOT issued orders for the same (DOT 64-01/2012-SU dated 10-06-
2013). But the pensioners who retired before 10-06-2013 have not received the same in their pension,
as separate orders are required, which are yet to be issued. To settle the issue, the Presidential
Directive issued by DOT has to be revised to extend the benefit of merger of 50% IDA with basic pay
w.e.f. 01-01-2007, effectively amounting to 78.2% for the purpose of fitment and pay fixation on actual
basis, instead of notional pay fixation keeping the arrear payment deferred as per agreement. This
fixation is based on the govt. orders of the VI Central Pay Commission and is implemented in all
Departments and PSUs. But the BSNL pensioners are denied the benefit of the same. This is pending
long in DOT /Dept. of Expenditure without any decision, resulting in deprival of the same to the BSNL
pensioners. Favourable decision may kindly be taken in the matter at the earliest which will be a great
relief to these senior citizens.

We request you to kindly consider the above issues favourably and issue necessary orders/directions so
that BSNL can once again be made financially viable as also efficient to enable it to provide a better
service to the nation. In this connection, we request that a meeting be granted to the Forum to present
our case.

W i t h
k i n d r e g a r d s ,
Y o u r s S
i n c e r e l y ,
m-94262 54999