BSNL Sends SOS to Narendra Modi Govt, Says Infuse Funds Immediately to Clear Salaries of Employees

New Delhi, June 24: The state-owned cash-strapped telecom service - Bharat Sanchar Nigam Limited (BSNL) - sent an emergency message to the Narendra Modi government on Monday, stating it needs an immediate cash infusion from the Centre to run its operations. In the SOS (save our ship) to the Union government, the telecom operator said that it is 'nearly impossible' to manage Rs 850 crore salary liability for June to its employees.

As per to the report, published in TOI, the outstanding liabilities for the cash-crunched PSU stands at nearly Rs 13,000 crore, which has made the business operations 'unsustainable'. In a letter to the telecom secretary, Senior General Manager at BSNL - Puran Chandra - stated that the gap between the monthly revenues and bare expenses at the government-run firm has widened following the cash crunch. Narendra Modi Government Plans Rs 6 Lakh Crore Spectrum Auction to Ensure Affordable 5G For Rural Regions

He wrote, as the daily quotes, "The gap between monthly revenues and bare expenses to continue operations as a going concern has reached to a level where continuing with BSNL operations would be nearly impossible without an immediate infusion of adequate equity." Puran leads the BSNL’s corporate budget and banking division and is a board member of BSNL.

A recent report, published by Kotak Institutional Equities, had mentioned that BSNl had become the top loss-making PSU whose accumulated operating loss crossed Rs 90,000 crore at the end of December 2018. Though various talk on the revival of the cash-strapped PSU took place by the ruling dispensation in the previous tenure, nothing concrete came out. Even the closure of BSNL had been ruled out by the Modi government.

Considering the standing debts of Rs 14,000 crore at the end of 2018-19 (FY) of BSNL and reduced interest of customers opting for the telecom service, the future looks bleak. Factors adding to the ongoing financial crisis like poor management functioning, poor management functioning, unwanted and often misdirected government interference and delays in modernisation plans have further deteriorated the condition. After Economic Panel, PM Modi Shifts Focus on CCEA Ahead of Union Budget 2019; Agrarian Sector Revival on Cards

While on one side, private telecom companies like Reliance Jio, Airtel and Vodafone are looking to bid for technological upgradation to 5G services, BSNL's current crisis is a serious alarm for the PM Modi government, which is already facing backlash over rising unemployment in the country.

(The above story first appeared on LatestLY on Jun 24, 2019 04:12 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).