Raja may lose job over BSNL ‘mishandling’

Trouble over the affairs at Bharat Sanchar Nigam Ltd (BSNL) could cost telecom minister A Raja his job, according to sources in the know.

One of them said a report compiled by Department of Telecommunications (DoT) bureaucrats on what ails the state-owned telecom major has been sent to the Prime Minister’s Office.

The report puts the blame of irregularities and dismal performance of BSNL squarely on the the Union telecom minister and the company.

“The central leadership in the government is seriously considering stripping the telecommunication portfolio from Raja after the Budget,” said the source, who did not want to be named.

Those in the know said the report blames the lack of accountability and ownership by the management for its undertaking’s dismal performance.

The report states that the Comptroller and Auditor General’s observation on the telecom major’s systemic deficiencies in planning, procurement of equipment and stores points to the management’s failure to steer the organisation out of the current crisis to grow in the competitive environment.

“It (the report) blamed BSNL’s flawed tendering process, which is mired in legal issues, for the delay in its expansion plans,” said the source.

He said the report has criticised the government-owned phone company for not issuing any new major contracts for mobile networks and equipments even when its existing network has reached full capacity.

Sources said the report highlights the fact that the public sector telecom firm had not captured the first mover advantage in 3G (third generation) and Wimax given to it. BSNL has been allotted 3G and Wimax spectrum ahead of the private sector players.

The report said if the company was allowed to operate in the current manner then government’s initiatives on e-governance, healthcare, primary education and public welfare in rural India, where BSNL is the only service provider, would suffer a setback.

Sources revealed the report lambasts BSNL management for focusing attention on doctoring tender processes to favour select vendors instead of improving the performance of the company.

BSNL’s position in the market, in term of number of subscribers, has lately slipped as it has added fewer new users than its rivals.
The report has also accused the state-owned telecom firm’s management of compromising the national security by favouring Chinese vendors like Huawei over telecom giants like Nokia, revealed a DoT source.

The report says the company has ignored warnings and signals from government agencies and is still favoring Huawei for Wimax equipment in border states like Rajasthan and Punjab.