BSNL divestment goes to GoM, unions end strike

Raja orders swift action on pay, promotion issues for non-officers.

The government will refer the issue of disinvestment in state-run telecom major Bharat Sanchar Nigam Ltd (BSNL) to a Group of Ministers (GoM). The development came after BSNL employee unions went on an indefinite strike today, which was called off later.

“We have assured BSNL unions that the issue of disinvestment will be referred to a GoM and they would be consulted before taking other decisions with regard to the company,” said communications and IT minister A Raja.

A committee chaired by Sam Pitroda, infrastructure advisor to the Prime Minister, had suggested 30 per cent disinvestment of equity shareholding in BSNL in phases and a voluntary retirement scheme to 1,00,000 people, of a total employee base of 3,50,000.

“After the minister’s assurance that unions will be consulted before any final decision on disinvestment and other issues, we decided to call off our strike. The wage revision will also be done within 15 days,” said the convener of the Joint Action Committee of BSNL Associations and Unions, V A N Namboodiri.

The unions were also demanding absorption of 1,500 Indian Telecom Services officers, who have been continuing on deputation for the past 10 years. On this, the Department of Telecommunications (DoT) said a Cabinet Note would be prepared.

Raja had directed DoT to resolve the issue relating to revision of pay scale of non-executives and implementation of promotion policy for them within 15 days, according to an official statement. It also said BSNL had been allowed to procure 10 million mobile lines immediately, while 20 million lines were in the process of installation.

BSNL’s market share is down to 12 per cent and iit is now in fifth position among mobile service providers. The company is expected to make losses for the first time in 2009-10, of about Rs 2,600 crore. For the nine months ended December, the company made a profit of merely Rs 150 crore, but has to pay out over Rs 3,000 crore as arrears of wages.