People's Democracy

THE BSNL Employees Union has opposed the government’s proposal to disinvest its equity in Bharat Sanchar Nigam Limited (BSNL), the biggest public sector undertaking (PSU) in the country. It is reported that on July 8 the Disinvestment Department proposed to float initial public offerings (IPOs) in 5 major PSUs, including BSNL, to mop up Rs 25,000 crore. It is reported that the government equity may be reduced up to 51 per cent.

The BSNL was formed from the Department of Telecom (DoT) in October 2000. While the services have expanded and phone connections increased, the profit has drastically come down from the earlier Rs 10,000 crore per annum, mainly due to the anti-BSNL decisions of the Telecom Regulatory Authority of India (TRAI) and the government. The government has not so far compensated for the losses the BSNL sustained in providing rural connections, as promised at the time of corporatisation. It is pertinent to note that the BSNL provided lakhs of rural connections while private companies have not fulfilled even 5 per cent of their obligation in this regard.

The BSNL Employees Union has demanded that the government drop the disinvestment proposal, and has asked the employees throughout the country to organise massive protest demonstrations in front of BSNL offices and exchanges. (INN)