Govt to appoint CMDs for BSNL, MTNL this month

The government is likely to appoint the chairmen and managing directors (CMDs) of state-run telecom public sector units BSNL and MTNL in the next two to three weeks. The Department of Telecommunications (DoT) has received applications, from even private sector for both posts. The last date for applications was March 18.

“We are in the process of shortlisting the candidates. A final decision will be taken in the next two to three weeks,” a senior official from DoT said. He said filling up the vacancies were part of Communications & Information Technology Minister Kapil Sibal’s 100-day agenda.

The appointments will also have to be approved by the Cabinet committee on appointments. Though the government has appointed acting CMDs for both PSUs, the temporary chiefs have been unable to make any decision regarding the functioning of the companies and other aspects.

Currently, the additional charge of BSNL CMD has been given to DoT Member (services) S C Misra, after acting CMD Gopal Das retired in February. The full-time CMD of BSNL, Kuldeep Goel, retired last July 6. MTNL’s last full-time CMD, R S P Sinha, resigned on January 12 , 2010, after which technical director Kuldip Singh has held additional charge.

The government had set up a new committee for the selection of candidates, headed by Sam Pitroda, chairman, National Knowledge Commission, and advisor to the prime minister. The other members include UIDAI Chairman Nandan Nilekani, Principal Secretary to the Prime Minister T K A Nair and Cabinet Secretary K M Chandrasekhar

The department had earlier scrapped the list of selected candidates picked by the selection panel and set up the new search-cum-selection panel as the decision turned controversial. The decision was also challenged by BSNL unions in court.

The increased competition and dipping tax in the sector had impacted the overall industry as a whole, but BSNL and MTNL have been losing revenues and market share on a constant basis. For the first time since inception in 2000, BSNL had posted a loss of Rs 1,823 crore in the financial year 2009-10, while MTNL has posted a loss of about Rs 671 for the third quarter ended December. MTNL's net continues to be dragged down by retirement benefits, increase in dearness relief of pension and high wages.