The Sam Pitroda Committee, set up by Prime Minister Manmohan Singh to devise methods to revive BSNL, has recommended rationalisation of 300,000 staff of BSNL to stem human resource costs.
After dilly dallying for over 20 months, state-owned telecom firm BSNL on Friday decided to scrap its controversial Rs 35,000-crore (Rs 350 billion) tender to procure equipment for expansion of its mobile services.
The Telecom Commission, the policy-making wing of the DoT, will soon take up the issue of divestment in state-run BSNL, Telecom Minister A Raja said on Wednesday.
The BSNL board had last year approved a plan under which the government would divest 10 per cent of its shares to the public. But opposition from the unions backed by the Left parties -- which supported the United Progressive Alliance in the last Parliament -- had stalled the process. That opposition has abated, now that the Left is no longer a factor in the current ruling alliance.
A three-member committee, members of which were not a part of BSNL's original tender evaluation committee, will submit its report by Monday for the board to evaluate.
Bharat Sanchar Nigam Limited, whose earlier 45.5 million GSM line tender was cut to half, will invite fresh bids for installing up to 50 million lines to expand its cellular capacity.
The deal will be limited to 2G lines only.
In view of the strong demand, state-run BSNL will add 60 million GSM lines in 2006-07 at an estimated investment of a whopping Rs 20,000 crore (Rs 200 billion).
Even as telecom services are being restored in Kashmir Valley, mobile operators are offering free calling facility in the region.
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