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BSNL IN FOCUS
Now, the media attention is unusually focused on BSNL and MTNL. Every day, morning and evening, some new news item is appearing. Some are nothing but imagination.
It is certain that the new Government wants to do something regarding BSNL and MTNL. A high level committee is constituted to consider various options for revival of the two PSEs. Aruna Sundararajan (Secretary, Telecom), Seema Bahuguna (Secretary, DPE), Injeti Srinivas (Secretary, Corporate Affairs) and G C Murmu (Secretary, Expenditure) are members of the committee. They met today, 4-7-2019, in the presence of Cabinet Secretary. NO FINAL DECISION is taken today. As usual, the Committee decided to obtain legal opinion on implication of allotment of 4G Spectrum to BSNL and on monetization of assets of BSNL (surplus land, towers and fibre).
It means it will take some more time to see the final outcome.
Just ignore other news and views.
Com. J K Tripathy (CHQ Vice President), hands over a DD for Rs Two Lakh to Shri Navin Patnaik, Honourable Chief MInister of Odisha at Bhubaneshwar on 3-7-2019, being the first instalment of our contribution to the CMDRF of Odisha. Com. B N Behera (CS Odisha), Com. Bhaskar Nayak (CHQ Org. Secretary) are also seen in the picture. Circle Assn. has received the official Receipt.
BUSINESS STANDARD reports on 3-7-2019
In an attempt to rescue ailing state-owned telecom companies BSNL and MTNL, the government is considering an Rs 74,000-crore bailout plan. The government's rescue strategy involves offering a handsome exit package to thousands of employees, including an additional 5 per cent compensation (ex-gratia) to make the VRS attractive.
BSNL is one of the country's biggest loss making PSU, while MTNL is the third-highest loss making PSU. In FY19, BSNL was grappling with an estimated loss of Rs 13,804 core while MTNL saw a loss of Rs 3,398 crore.
The other state-owned company to have a loss higher than MTNL, apart from BSNL is Air India. If this package follows through then the two PSUs will overtake Air India as the biggest drain on the national exchequer, as mentioned in a report in Times of India.
Officials told the daily that the proposal for which a draft Cabinet note has been circulated said that 4G spectrum valued at over Rs 20,000 crore will be allotted by the government and the rollout cost of Rs 13,000 crore will be paid by the PSUs. The government will foot the bill of over Rs 40,000 crore towards VRS package and early retirement benefits.
The government also believes that the costs of the companies can be reduced by bringing down the retirement age to 58 years from 60 years and offering a lucrative VRS package, as mentioned in the daily.
The government also said that shutting down the PSUs is not much of an option as it will cost Rs 1.2 lakh crore and is unviable. The department of telecom said that strategic disinvestment may not find any takers due to the financial stress in the telecom sector but a joint venture can be explored.
BSNL and MTNL have witnessed poor management, high staff cost, government interference and slow pace in upgrading to new technology while competitors swiftly adapted to 4G and even 5G. These factors have led to a loss in market share in the mobile services business.
.......
PTI NEWS: New Delhi: 3-7-2019:
State-owned telecom firm BSNL's loss is estimated to be around Rs 14,000 crore with a decline in revenue to Rs 19,308 crore during 2018-19, Parliament was informed on Wednesday.
The public sector firm's provisional loss was Rs 4,859 crore in 2015-16,
Rs 4,793 crore in 2016-17,
Rs 7,993 crore in 2017-18
and is estimated to widen to Rs 14,202 crore in 2018-19, Telecom Minister Ravi Shankar Prasad said in a written reply to the Lok Sabha.
"Low tariffs due to fierce competition in the mobile segment, high staff cost and absence of 4G services (except in few places) in the data-centric telecom market are the main reasons for losses of BSNL," Prasad said.
In line with the sector, BSNL has also seen a dip in its revenue after the entry of Reliance Jio in the market in 2016.
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FOLLOWING IS THE LETTER ADDRESSED TO SHRI RAVI SHANKAR PRASAD, FELICITATING HIM ON ASSUMING CHARGE OF MINISTER FOR COMMUNICATIONS.
IT WAS GIVEN ON BEHALF OF AIBSNLPWA AND CBMPA.. YESTERDAY I COULD NOT SOMEHOW UPLOAD THIS LETTER IN THIS SITE. IT WAS AN INADVERTENT ERROR ON MY PART.
.............................................. PSR
Please click here to see the letter: letter-to-rsp.pdf
As reported earlier, our GS Com. Gangadhara Rao, along with Com Changappa (CS, KTK Circle) and leaders of Hubli met Shri Pralhad Joshi, the fourth time MP from Hubli-Dharwad on 22-6-2019 and sought his help to settle our demand for pension revision. Comrades Radhakrishna (AGS CHQ), Gandigawad (VP HB), Shivananda (VP KTK), S T Pawar (DS HB), S L Purjar (OS HB) were also present.
Shri Pralhad Joshiji is now Minister for Parliamentary Affairs, succeeding his close friend late Sh. Ananthkumar.
IN DELHI ON 1-7-2019:
On the instruction from Sh. Pralhad Joshiji, Com. Gangadhara Rao, Com. Changappa and our senior Vice President Com. D Gopalakrishnan reached Delhi on 30-6-2019. They, along with Com. Anupam Kaul (AGS CHQ), Com. M K Bagchi (Veteran leader of MTNL Pensioners) and Com. S S Nanda (Convener of RTOWA Delhi) met Shri Joshiji in his official residence at 10 AM.…..
Shri Joshi was very effective as Ananthkumarji.He arranged a meeting with Minister of State for Communications, Shri Dhotre Shyamlal Shamrao.
MEETING SHRI DHOTREJI
Our leaders met Shri Dhotre, MOS© at 4.30 PM and handed over a letter explaining our demand. He was very friendly and positive. After going through our letter he desired that we should meet senior minister Shri Ravi Shankar Prasad also.
MEETING Sh. RAVI SHANKAR PRASADJI:
Once again, Shri Pralhad Joshi helped.He arranged a meeting Communication Minister Shri Ravi Shankar Prasadji. Comrades Gangadhara Rao, DG, M K Bagchi, Changappa and Nanda met the minister at 6.35 PM on 2-7-2019. The meeting lasted for 15 minutes. Initially, the minister was very angry with performance of BSNL.Our leaders explained our case slowly. He heard it very keenly and understood the matter. We told him
1.We are asking for pension revision after ten years.
2.There is no liability for BSNL on Pension Revision.
3.The financial liability lies with Government only.
Shri Ravishankar Prasad asked some questions too and our leaders explained that
a) All staff unions have demanded delinking of pension revision from pay revision in BSNL.
b )We have addressed (in our letter handed over to him) the issue of probable anomaly in the pension of post-2017 retirees.
c) The financial liability may be around Rs 650-700 crore.
(1)DoT sent a letter to Dept of Pension in November 2018 for which DOP&PW asked DoT to submit concrete proposal about pension Revision. DoT did not submit it. We approached the DoP&PW.On 8-3-2019, DoP&PW again asked DoT to submit the concrete proposal. Depite of it, the DoT has not done it.
(2) Entire BSNL/MTNL pensioners await an intervention by the Honourable Minister.
After hearing the leaders, Shri Ravishankar Prasad, the Minister for Communications assured categorically; “I will take care of it”
We are Hopeful.We thank Shri Pralhad Joshiji, his personal staff, the comrades of Hubli and Karnataka for the great work done.
The letter we handed over to Shri Ravi Shankar Prasad and Shri Dhotre is given below:
ALL INDIA BSNL PENSIONERS’ WELFARE ASSOCIATION
Central Head Quarters [ Regd. No. T 1833/09 ]
H. No 6, G No 12th Street, Jogupalya, Halasuru, Bangalore 560008
To
Shri Ravi Shankar Prasadji,
Hon. Minister for Communications and Information Technology,
Government of India, Sanchar Bhawan, New Delhi 110001.
Respected Sir,
Sub: Pension Revision from 1/1/2017 for BSNL/MTNL IDA pensioners
We are constrained to seek your kind help on the above issue sir.
Background
1.When the Govt. proposed corporatisation of DoT in 2000, there were protests from the employees.The Govt. appointed a GoM under the chairmanship of Shri Ram Vilas Paswanji, then Communication Minister, to look into the demands of the employees.After several rounds of discussions GoM had with leaders of unions, Govt. issued a gazette notification on 30/9/2000, one day prior to formation of BSNL, amending CCS (Pension) Rules 1972 by incorporating Rule 37-A.
2. Sub-rule 22 of Rule 37-A states “Nothig contained in sub-rules (13) to (21) shall apply in the case of conversion of the Departments of Telecom Services and Telecom Operations into Bharat Sanchar Nigam Limited and Mahanagar Telephones Nigam limited in which case the pensionary benefits including family pension shall be paid by the Govt.”
3. Sub-rule 23 states “The Govt. shall specify the arrangement and the manner including the rate of pensionary contributions to be made by BSNL & MTNL to the Govt. and the manner in which financial liabilities on this account shall be met”.
4.Accordingly the absorbees who retired from BSNL/MTNL got their pension including family pension from GoI.
5. In CPSEs, pay of the executives is revised in accordance with Pay Revision Committee (PRC) recommendations.The terms of reference did not include ‘pension revision’ in any of the three PRCs.The pay of the non-executives are revised as per the agreement between the management and the recognised unions.BSNL revised the pay in accordance with 2nd PRC recommendations (with 30% weightage of pay + DA) w.e.f. 1/1/2007.But simultaneously the pension was not revised for those who retired prior to 1/1/2007.
6. After several struggles and negotiations, DoT issued an order on 15/3/2011 based on Cabinet decision, for revision of pension from 1/1/2007 for those who retired before 1/1/2007.The revision was on the same formula that was given to employees to avoid any anomaly in pension for those who retired prior to 1/1/2007 and those who retired after 1/1/2007.
Changed situation
7. There is a change in the situation now with regard to sub-rule 23 of Rule 37-A of CCS (Pension) Rules 1972.Before 20/7/2016, the Government’s liability for payment of pension/family pension was limited to 60% of revenue received from BSNL/MTNL by way of various taxes.But, by a decision of the Cabinet, DoT issued order on 20/7/2016 annuling that condition which means that it is not linked to the revenue of these two CPSEs.Now 100% liability lies with GoI.However pension contribution is being paid by BSNL/MTNL to the Govt.
8. Conditions mentioned in 3rd PRC recommendations do not permit these two CPSEs, which are facing serious financial crunch to revise the pay of the employees as per 3rd PRC recommendations.
9. Now, the pension revision has nothing to do with the financial position of these two CPSEs as explained in para 7.Hence pension revision need not be linked to pay revision.
Our Demand
10. Pension revision from 1/1/2017 i.e. after 10 years of last revision, by applying 32% weightage as recommended by 7th CPC and implemented to more than 56 lakh C.G. pensioners w.e.f. 1/1/2016.We request for application of a multiplying factor of 2.515 (100 + 119.5 + 32 = 251.5).Beneficiaries may be around 2 lakh pensioners.
Justification
11. C.G pensioners and BSNL/MTNL pensioners (combined service optees) are covered under the same CCS (Pension) Rules 1972 and all the retirement benefits including gratuity are similar to both of them.
12. Both C.G pensioners and BSNL/MTNL pensioners are getting their pension/family pension from Central Civil Estimate. The CGHS facilitiesare available only to BSNL/MTNL pensioners as they are drawing pension from Central Civil Estimates whereas the employees of BSNL/MTNL are not eligible for the CGHS facilities.
13. Almost all the recommendations of CPC like pension formula, enhanced family pension, age-related additional pension, commutation table etc. are made applicable not only to C.G CDA pensioners but also to BSNL/MTNL IDA pensioners.
14. The minimum & maximum pension of BSNL/MTNL IDA pensioners are not linked to the minimum/maximum pay of BSNL/MTNL but to that of Central Government.
Doubts and our clarifications
15. Pension is related to pay and whether pension can be revised without pay revision is one doubt.It is true that pension is related to pay at the time of initial fixation of pension but pension revision was based on ‘existing pension’.Further, minimum/maximum pension of BSNL/MTNL IDA pensioners are not related to their minimum/maximum pay in BSNL/MTNL but that of C.G. employees’ minimum/maximum pay.Hence that doubt is not valid.
16. The C.G. pensioners are getting pension on CDA pay and Dearness Relief under that formula but BSNL/MTNL IDA pensioners are getting pension on IDA pay and DR under that formula is another doubt.It is the legal requirement that any CPSE started after 1/1/1989 should only have IDA pay as per Apex Court judgement dated 03/05/1990.Rule 33 & 34 of CCS (Pension) Rules 1972 statesthat pension should be determined on the basis of emoluments or average emoluments drawn at the time of retirement.So, the argument of CDA & IDA pattern is not a valid one.
17. If CPC fitment factor has to be applied to these IDA pensioners, then their pay has to be notionally revised from IDA to CDA on the basis of 19/9/2003 OM of DoP&PW according to concerned officers in Sanchar Bhawan.When the DoT proposed this during the last pension revision, DoP&PW which issued that OM did not agree and it was a settled matter at that point of time itself.Re-opening of an already settled matter shall not stand legal scrutiny.
18. If 32% fitment factor is given to those who retired prior to 1/1/2017 and if there is no pay revision for employees from 1/1/2017, then an anomaly will arise between those who retired prior to 1/1/2017 and retired after 1/1/2017.It would be a real issue and to solve this issue, we suggest that for those who retire after 1/1/2017 may be given 32% of basic pay at the time of retirement notionally and their pension can be fixed, taking into account the notional pay.There are precedences to fix the pension on the basis of notional pay.That would avoid any financial burden on the part of BSNL/MTNL. When 50% DA merger order was issued to pensioners on 18/7/2016, it was fixed on notional basis from 1/1/2007 to 9/6/2013.So, there is a solution to this problem also.
Conclusion
19.Nothing defies a solution provided there is a will. We are conscious that our demand requires a policy decision and it can’t be conceded by the officers in a routine way. We earnestly request the Hon. Minister for Communication to direct the concerned officers to send a concrete proposal, with justification quoted above, as a reply to their communication including their letter dated 8/3/2019 (copy enclosed). When we had discussions with concerned officers in DoP&PW, they informed us that they are willing to consider the demand provided DoT sends a concrete proposal with due justification.
Thanking you
Yours faithfully,
(P.Gangadhara Rao)
General Secretary.
Encl:DoP&PW letter dated 8-3-2019
.... (Identical letter was addressed to Shri Dhotre, MOS(C) also)...
Whether the BSNL and MTNL will remain as they are now is a big question. It depends upon the political will of the government. Merger may take place. Or, new company may be floated to handle new services. Anything can happen in next five years.
Officers/management of the two PSUs have very little role to play in decision making. But, they are at the vintage position. They have to give proper and correct feedback to political leadership/Government. The top officers must have clear vision and imagination about future. Cell phones may not survive five years. Technology is changing very fast. New services have to be introduced utilizing technological revolution in the field. NEW BRAINS are required. (It is my considered personal view. Some friends may disagree.)
ANYWAY, WE WILL WITNESS MANY CHANGES…..
…PSR…
According to some media reports, the DoT will be moving a Cabinet Note very soon for revival of BSNL and MTNL. Details are not known.
After the meeting held by Cabinet Secretary with Secretary, Telecom and others the other day, a HIGH LEVEL committee is constituted to consider the matter of revival of the two Govt owned Telcos. The said committee will be meeting on 4-7-2019.Something concrete will be known after that meeting only.
Entire Telecom industry is facing serious crisis now. Even Tatas have closed their business. Aircel has become insolvent. RCom of Anil Ambani has become insolvent. Many of the companies including Jio of Mukhesh Ambani have huge debts to be cleared. Compared to them, the BSNL has only a small amount of debts…
…. P S Ramankutty …
The government has named Sh. Pravin Kumar Purwar as the new CMD of BSNL for three months. Shri Anupam Shrivastava has demited office on 30th June 2019 on superannuation. Shri Purwar is presently the CMD of MTNL. He will hold additional charge of CMD BSNL till regular appointment is made.
It is reported that Com. N T Sajwani, a long time leader of E3 Union in MP Circle and former SG of NFTE for a short period expired today at Bhopal. Time and date of his funeral is not known as his family was out of the city.
We convey our heartfelt condolences on the demise of Com. N T Sajwani.
The Labour Bureau of India has announced AICPI for the month of May 2019 as 314 points.
The Index for March 2019 was 309 and for April 312 points. Taking the average for the three months the rate of IDA from July 2019 shall be: 146.7%.
An increase of 5.3% from 141.4 to 146.7%.
Zee News reports:
New Delhi: A committee of secretaries will meet on 4, July for restructuring of BSNL and MTNL to decide the fate of the ailing state-run telecom companies. The committee of secretaries will discuss 4 main options to revive BSNL & MTNL, sources said, adding that sale of the assets currently being possessed by both the companies will also be discussed.
1. Sources told Zee Media that land monetization is being seen as an option to provide funds or financial support to cash crunch companies.
2. Talks on merger of BSNL and MTNL merger will also be on the agenda of discussion. Sources said that both BSNL and MTNL have a huge number of employees and government may look for an option to provide VRS to employees before going ahead with the merger plans.
3. Government is also of a view that to revive BSNL it needs to have an extra edge with the competitors. 5G Technology, involves huge cost, and if gets does not get any bidder then BSNL may be the only player to offer 5G service in future.
4. BSNL and MTNL are facing severe cash crunch that has even led to the companies admitting that they may not have enough funds to pay June salaries to employees.
........................................................................................................................................
It is good that the Government is taking serious note of current financial crisis of BSNL. Since large majority of the 1.55 lakh absorbed employees will retire on superannuation during the next three years, the idea of VRS may be dropped, so that huge expenditure on special compensation can be avoided. . Let us wait for the decision of the Government.
DON’T BE PANIC
Whatsapp is full of panic messages from our
comrades. Everyday there is some news item in
the media about BSNL and MTNL.
Some are baseless. Some are half-truth.
On 24-6-2019 it was reported that DOT met PMO
to discuss revival of BSNL/MTNL. Today it is
reported that Secretary, Telecom alone met
the Cabinet Secretary…..
It is a deliberate attempt to impress upon the
employees of BSNL that the company is in a deep
crisis, that company cannot pay salary, that
BSNL can be revived only if employees accept
some harsh steps.
It is a psychological game to compel the
employees accept any condition.
Let us not add the confusion. Let the staff
Unions decide their course of action. Let
something concrete and official come out.
Nobody expected this fatal fall
of corporatization so early.
….PSR…
On 22-06-2019, leaders of AIBSNLPWA met Shri Pralhad Joshiji, Honourable Minister for Parliamentary Affairs at his hometown of Hubli in North Karnataka and felicitated him on assuming charge of the important ministry, as successor of his close colleague, late Shri Ananthkumarji. Our leaders sought the help of Shri Joshiji in settling our main demand of Pension Revision. The Honourable minister positively responded and assured his help in the matter.
Shri Joshi keenly listening to our GS.
From L to R:
Comrades Shreedhar Pawar (DS Hubli), Radhakrishna (AGS, CHQ), S L Pujar (OS Hubli),
Gandigawada (VP Hubli), Shivananda (VP KTK Circle), Shri Joshiji, P Gangadhara Rao (GS),
Tarikeri (Active member of Hubli) and R Changappa (CS, KTK Circle).
BSNL has written a letter to DoT stating that the financial condition is very bad and it may not be possible to pay salary to the staff for June 2019 on time. Salary was delayed in February. Then PM intervened due to elections and asked not to delay the payment till May. Month of May is over, elections are over.So, the problem reappears in June…
..
DoT has issued a letter conveying the proposal to take back ALTTC complex at Ghaziabad. In fact, the DoT should take back entire BSNL with its staff to Govt. Service as the experiment has totally failed.
The next membership verification for non Executives Unions in BSNL is to be held on 16, September 2019. BSNL Management has issued instructions that unions cannot form alliances. All Unions should fight individually. But, in politics there can be NDA, UPA etc. Leader of a party with one or two MPs also can become cabinet minister. Then why this different rule for trade unions? In one way, it is good. Small unions with 2% or 3% membership cannot enjoy the fruits of recognition through back door.
....
Our Case in CAT Ernakulam for Pension @ 50% of Last Pay Drawn, was not taken up for hearing on 21-6-2019 though it was listed. The Court heard some cases but our number did not come.
The delay is quite disgusting.
Business Standard has published the following news item:
The relief package for debt-laden Bharat Sanchar Nigam (BSNL) might be delayed as the department of telecom (DoT) considers lowering the retirement age of the employees of the government-owned telecom major to 58 years, instead of offering a one-time voluntary retirement scheme (VRS).
The outgo for proposed VRS package would be Rs 6,365 crore. The Ministry of Finance had raised concerns over this.
Once the DoT finalises what it wants to do, the proposal would go straight to the Union Cabinet — instead of the Digital Communications Commission (DCC) — to avoid delays.
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The office of Finance Minister has provided an opportunity to any citizen to submit suggestions on new Budget proposals. It is a different matter if your suggestion will be considered or accepted. But there is an opportunity for you. Visit the website www.mygov.in and submit your suggestion online. It should be brief. Nobody has time and patience to read lengthy Notes.
Today, I have submitted the following:
There are about 3 crore pensioners in India, including 65 lakh central service pensioners.
Pensionary benefits are not taxed, but pension of government employees and PSE pensioners are taxed.
Pension of MPs is not taxed on the plea that “ it is not salary but income from other sources”.
“Other sources” is nothing but Exchequer. Govt pensioners too get pension from same source.
Hence, PENSION of everybody should be out of tax net. Such a declaration by the MODI II Govt. will earn goodwill of 10-15 crore of people, though the beneficiaries may be 10% of that.
Taxes on Liquor and luxury items should be increased.
We do not produce gold. But we are second in the world in buying gold ornaments. This wealth is nonproductive; it helps neither the nation nor the society. Hence maximum tax should be imposed on gold transactions.
Tax on cars costing Rs 5 lakh or above may be increased.
.... P S Ramankutty ..