BSNL differs with Sam Pitroda panel suggestions

The Bharat Sanchar Nigam Ltd (BSNL) board may have agreed broadly with the recommendations of the Sam Pitroda-led committee on public information, infrastructure and innovation, but it has pointed out that it may not be feasible for a state-owned undertaking to implement many of the panel’s suggestions.

For instance, on the panel’s recommendation that BSNL should focus on selecting the best professionals in the industry at market rates, the board said, “we are in agreement.” But it added that

“BSNL, being a central PSU, is governed by DPE’s (department of public enterprises’) guidelines with respect to salaries and wages of all employees including functional directors/ CMDs/ MDs.”

The modalities to address the issue of difference in market salaries and PSU pay scales and the selection process may also require redressal, it said. The committee has recommended that an eminent person from the private sector should be appointed as the chairman of BSNL to focus on shareholder value, and the post of managing director should be separated. To that, the BSNL board said the government may take a suitable decision.

On the panel’s recommendation to retire or transfer around 100,000 employees through voluntary retirement scheme (VRS), the BSNL board has cited the many challenges. “Typical challenges associated with VRS are strong resistance from the unions, possibility of losing good people and the risk of creating a negative sentiment,” the board said.

While stating that VRS could be targeted at specific cadres where there is a surplus workforce, the board said the government should provide BSNL with a financial package (4-5 years’ salary) to cover the cost of the VRS scheme.

On the panel’s recommendation that 30% should be disinvested in BSNL in stages at an appropriate time, the board said the decision by the PSU “to request the government to consider for sale to the public 10% of its shareholding in the company” has already been communicated by BSNL.