Letters: Too late for MTNL, BSNL

This refers to the edit “Govt must exit telecom PSUs” (October 16). In almost all public sector undertakings (PSUs), a common feature is that of surplus staff. Mahanagar Telephone Nigam Limited (MTNL) and Bharat Sanchar Nigam Limited (BSNL) are no exceptions. When there was no competition, the two companies earned monopoly profits, though customer service was poor. After the entry of private players, both companies lost market share rapidly.

Another reason for their poor financial performance is lack of freedom to take business decisions owing to ministerial and bureaucratic interference. As pointed out, it is now too late and these PSUs may never be able to earn profits. But the suggestion that the government must exit these PSUs is unlikely to be even considered. Our government will pour more funds into these PSUs, as it has done in the case of Air India — all in the name of the aam aadmi!

 

Narendra M Apte Pune

. . . let them fail

When a loss-making PSU has the option of being subsidised by the government, it would, of course, take the easier route to prevent further loss. We have seen how our government is literally throwing good money after bad in cases like Air India — a company that has long passed its expiry date. Thus, your edit rightly asserts there is no point in the exchequer continuing to pay for the inefficiency of PSUs. Given the dog-eat-dog competition in the Indian telecom sector, it would be tough for MTNL and BSNL to survive in the long run. The government can, at best, put these PSUs on the ventilator but it should make no efforts beyond that. The best course of action would be to hand these PSUs over to private hands.

Bal Govind Noida

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