MTNL income declines by 3% to Rs 5,058 cr

State-run MTNL is becoming increasingly overburdened by its huge staff cost, which touched Rs 4,666 crore during 2009-10, while its income has declined by 3% to Rs 5,058 crore year-on-year.

The rise in staff cost is majorly on account of pay revision and arrears thereof.

"As on December 31, 2010, the total manpower strength of Mahanagar Telephone Nigam Ltd (MTNL) is 44,046," Minister of State for IT & Telecom Gurudas Kamat said in a reply to Rajya Sabha.

In 2007-08, the state-run telephone operator spent Rs 1,643 crore, while its income stood at Rs 5,330 crore. During 2008-09, the company's workforce cost stood at Rs 2,127 crore, while its income was Rs 5,220 crore.

MTNL has been taking steps to curtail avoidable expenditure which includes ban on all recruitments expect key areas, where posts have to be manned by professionally qualified personnel.

They have also taken steps to cut non-essential expenditure like tour expenses by promoting the use of video conferencing.

Recently, the Department of Telecommunications (DoT) had set up a search-cum-selection panel headed by Sam Pitroda to select the Chief Managing Directors of MTNL and BSNL.

Other members in this panel are UIDAI Chairman Nandan Nilekani, Principal Secretary to Prime Minister T K Nair, and Cabinet Secretary K M Chandrashekhar.

According to a senior DoT official, the search-cum-selection panel has been given three weeks time to finish the selection process after receipt of all applications. Last date for submission of application for these vacancies is March 18, 2011.