Preferential shares for BSNL staff on anvil

The government today said it was contemplating giving preferential shares for employees of BSNL as and when consensus was reached on the Initial Public Offer (IPO) from the state-run telecom operator.

“I assure you it is not a question of disinvestment or privatisation. If it is possible, we can go in for 10-20 per cent IPO,” Telecom Minister A Raja said in the Rajya Sabha.

He said discussions were on with trade unions on the issue but no decision on IPO had yet been taken.

“Preferential shares can be given to workers,” Raja said.

He admitted that BSNL profit had come down to Rs 500 crore citing reasons as delay in expansion plans owing to court cases on tenders for new equipment floated by the PSU.

“Because of the court cases we are not able to build up the expansion,” he said adding in Delhi even urban development and home ministries do not allow the companies to put up more towers.

However, BSNL will soon place Advanced Purchase Order for equipment to roll out 93 million connections.

Responding to complaints on call drops, he said “It is not common as the quality of service is being monitored by Trai.”

BSNL and MTNL have to live with fierce competition while facing regular impediments of PSUs. Besides, negotiations for procurement of equipment take time in the absence of Chinese vendors which can not be used in the border areas.

Meanwhile, The government today said it was considering part sale of its shareholding in telecom PSU BSNL, a move that would help the company in getting the Navratna status besides access to capital market for raising fresh funds.