State-run telecom major Bharat Sanchar Nigam Ltd (BSNL) has appointed Gopal Das as acting Chairman and Managing Director after the retirement of Kuldeep Goel on July 31.
Das, who is currently Director (Human Resources Development), will be the acting chief till a new CMD is appointed by the government-nominated search panel. The government has constituted a search-cum-selection panel, headed by the Cabinet Secretary, for finding suitable candidates from public or private sector for the posts of CMDs of BSNL and MTNL.
It was one of the recommendations of Sam Pitroda committee, which was set up to suggest ways and means for revival of BSNL.
The panel has already invited applications from candidates to this effect. Both the CMDs will be hired on a contract basis with a fixed term of three years, which can be extended for a further period of three years based on performance evaluation by an external expert group.
“After a good old journey of more than three decades, this is the best form of reward I can seek for my career. A great challenge lies ahead of us and I am sure we will meet every challenge with determination,” Das said in a statement. Prior to joining BSNL in 2007, Das has served as the Chief General Manager (Wireless Services) in Mahanagar Telephone Nigam Limited at Mumbai. For the first time since its inception 10 years ago, BSNL had posted losses of Rs 1823 crore in the financial year 2009-10.
Declining revenues mainly from landline services along with a higher wage bill because of arrears, which had to be paid on Sixth Pay commission recommendations led the telco going into the red.
The company had recorded a profit of Rs 575 crore in 2008-09.
BSNL also recorded a 10.4 per cent decline in its revenues at Rs 32045.41 crore for 2009-10 against Rs 35812 crore.
“The wage revision alone caused an additional expenditure of Rs 2900 crore. If the wage revision had not been there, the company would have recorded a profit before tax of Rs 703 crore,” he said. The drastic reduction in tariff with tough competition also impacted the growth of the company.