Retrenchment in BSNL would have wider implication: Raja

Cautioning that any retrenchment in the telecom PSU BSNL, as recommended by a Prime Ministerial panel, would have "wider implication", Telecom Minister A Raja has said that the issue needed to be considered in detail.

"Wider implications on retrenchment of staff and immediate requirement of BSNL till the new system (of procurement) is adopted, have to be addressed at length in the BSNL Board," Raja is understood to have told Telecom Secretary P J Thomas.

The Sam Pitroda Committee, set up by Prime Minister Manmohan Singh to devise methods to revive BSNL, has recommended rationalisation of three lakh staff of BSNL to stem HR costs.

The panel, which has already submitted its report to the Prime Minister, has suggested that employees strength to be slashed by a third.

The panel has also suggested 30 per cent disinvestment in the PSU. The report among other things, also talks about the changes in procurement processes and procedures of the PSU.

Reacting on the recommendation for change in the procurement process, Raja said the decision to move to managed services model from the existing equipment procurement through tender process, should be reviewed.

"... It (decision to switch to manage services) should be placed before the Full Telecom Commission since it is a major policy change and decision with respect to the BSNL."