3, ఏప్రిల్ 2015, శుక్రవారం

Communications Minister Mr.Ravishankar Prasad, it is not enough to blame Manmohan Singh Government for the BSNL’s losses, your Government has to prove its sincerity by taking suitable measures for saving BSNL

On 2.4.2015, in an interview given to PTI, the Communications Minister Shri Ravishankar Prasad has stated,” This issue has always baffled me. BSNSL was in Rs 10000 crore profit when Mr (Atal Bihari) Vajpayee left the office. It reported about Rs 9000 crore loss under Dr Manmohan Singh. Which were the forces that were keen to ensure that BSNL runs in loss, same with MTNL”. He is questioning as if he does not know the causes for the losses to BSNL.  This is nothing but pretending innocence. In fact, is it not the Government of Sri Atal Bihari Vajpayee which laid the foundation for the losses to BSNL?
When BSNL was being formed in the year 2000, several intellectuals as well as telecom unions told that the formation of BSNL would lead to losses to it. But ignoring all this, the Vajpayee Government converted telecom services under DoT into BSNL on 1.10.2000. At the time of formation of BSNL, it was assured to compensate BSNL for the losses faced by it on rural land line losses. The Prime Minister Mr. Vajpayee had constituted a GoM (Group of Ministers) and the GoM has assured the following:
“Financial viability: (i) Bharat Sanchar Nigam Ltd would be duly compensated for discharging obligations in regard to rural telephony or any other uneconomic service in accordance with any Government directive for implementation of NTP-99. (ii) GoM has further assured that under no circumstances Bharat Sanchar Nigam Ltd would be allowed to become non-viable as this would be a potential instrument in the hands of the Government for achieving its NTP-99 objectives”
The above assurance was mentioned in the Cabinet Note submitted by the GoM on 25.9.2000 for the approval of the Cabinet. But within two days, this assurance was diluted and the Cabinet approved the following: “Government will consider and provide a package of measures so that the viability of BSNL is not impaired because of implementation of any socially desirable uneconomic activity, such as rural telephony, undertaken by BSNL at the behest of Government.”
It is to be noted that while the Cabinet note prepared by the GoM assured to compensate the loss of BSNL on rural landlines without mentioning any ceiling on how long such compensation would be paid, the Cabinet approval is only for a limited package applicable for a limited period for compensating BSNL’s losses on rural landlines. Accordingly the Vajpayee Government at first approved for reimbursement of license fee and spectrum charges to BSNL only until 2002-03. It later extended it for one more year till 2003-04. It limited the moratorium on payment of principal and interest on loan taken by BSNL at the time of its formation ( it was only a notional loan written in the books of BSNL without actually paying to it) until March 2005 only. The UPA Government extended the reimbursement of license fee and spectrum charge to BSNL for one more year, till 2005-06, of course, with a reduced rate. Thus it is the Vajpayee Government which laid the foundation for the losses to BSNL by limiting the assurance of compensation to BSNL for its losses on land lines to a package applicable for a few years.
BSNL’s losses on its rural landlines, on an average, were Rs 8000 crore per year since 2001-02to 2013-14.At this rate, The total loss for this period was estimated to be around Rs 1,04,000 crores.  But the compensation paid to BSNL under various heads for the losses incurred by it on rural landlines was Rs 41370 crores only. It is only 40% of its loss. While thus refusing the full compensation justified for BSNL, the Vajpayee Government had showered unjustifiable benefits on the private telecom operators. It extended their license period from 10 years to 20 years and allowed them to pay their license fee as a small share of their revenue annually, instead of paying at one go their total license fee, as per the tender condition. The value of these unfair concessions given to private operators was Rs 43000 crore, as per the reply given by the UPA Government in the Parliament. Therefore the policy of the Vajpayee Government for limiting the compensation to BSNL for its continuous losses on its landlines to a package applicable for a limited period is the cause for creating losses to BSNL subsequently.
The Manmohan Singh Government had continued the same policy of Vajpayee and restricted the compensation to BSNL until 2006-07 only and thereafter, stopped it.  Besides, during the tenure of the Manmohan Singh Government, no GSM equipment could be procured by BSNL during the period 2008 to 20132 due to the ill motivated cancellation of the equipment tenders and as a result, BSNL suffered in mobile services market. The Manmohan Singh Government has collected Rs 18500 crore from BSNL in 2010 in the name of 3G and BWA spectrum in an unjustified manner and depleted its cash reserves. Thus, the losses to BSNL are due to the anti BSNL policies of Vajpayee and Manmohan Singh Governments. Therefore it is a bluff on the part of the present Communications Minister Ravishankar Prasad to absove Vajpayee Government from the sin of making BSNL a loss making undertaking.  
Modi Government, in which Mr.Ravishankar Prasad is the Communications Minister, has been intensifying the very same liberalization-privatization-globalization policies of Mr. Manmohan Singh’s Government. Modi Government is devotedly immersed in serving the Corporates and the rich and for this purpose attacking the PSUs, the people’s welfare and the working class rights more and more.
If Mr. Ravishankar Prasad is really serious for reviving BSNL, he should clarify the stand of the Modi Government in which he is a minister, on the following issues:
  1. The Manmohan Singh Government decided in February 2012 for refunding Rs 6724 crores to BSNL for the BWA spectrum returned by it in 6 circles. But Modi Government, instead of refunding the entire amount in one go immediately, has allotted Rs 100 crores in the budget of 2014-15 and Rs 830 crore in the budget of 2015-16. Why the amount is not being paid entirely and why it is allotting such small amounts in the budget thus proposing to take at least one decade for its refund? What you, as a Communications Minister, have done for seeing that this refund of the entire amount of Rs 6724 crore is paid to BSNL immediately?
  2. As per the recommendations of the TRAI, Rs 1250 crore are to be paid to BSNL from the USO fund to support it for the losses it incurred on its rural landlines during the year 2012-13. Why your Governemnt is not paying this due amount to BSNL?
  3. Why your Government is not coming forward to see that BSNL gets the required loan with nominal interest for investing in the expansion of its net work? Why the Government is reluctant to give guarantee to the bank for this loan to BSNL? When your Government is showering concessions upon concessions to the Corporates and the rich and issuing ordinances upon ordinances to take away land from the farmers without their consent, for the benefit of the Corporates, is not coming forward to stand as a surety for the BSNL to get a soft loan?

Therefore the foundation for the losses to BSNL was laid down by the policies of the Vajpayee Government and those policies were further implemented by Manmohan Singh Government resulting in losses to BSNL. If the Minister Mr.Ravishankar Prasad thinks that his Government is different from that of Manmohan Singh’s Government, it should pay the above said amounts of Rs 6724 crores and Rs 1250 crores to BSNL and should see that BSNL gets the soft loan required for expanding and upgrading its network. 

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