DoT arm to consider Pitroda panel report today

The Telecom Commission, the highest decision making body of the Department of Telecommunications (DoT), would meet here tomorrow to consider the recommendations of the Sam Pitroda committee on the revival of state-run telecom major BSNL.

The Pitroda panel had recommended steep changes in the functioning of BSNL, which includes appointment of chairman and managing director (CMD) from the private sector and outsourcing of its network management. The current CMD, Kuldeep Goel, is retiring by the end of this month.

The committee had given its report in March, but DoT has not taken any decision on it.

On the lines of the committee’s recommendations, the Prime Minister’s Office has asked DoT to set up a search committee and recruit the next BSNL CMD from the private sector. However, DoT says that changing the selection process requires time.

For the first time, BSNL is expected to post losses this year. It has paid out Rs 3,700 crore in pay arrears, and may end 2009-10 (it is yet to declare results for the year) with losses. At the end of December 2009, the company had a net profit of Rs 175 crore. The company also has been losing market share due to stiff competition and falling prices.