Bharat Sanchar Nigam Limited (BSNL) is on track to building a successful business. The state-run telco is no longer looking to tolerate the circles that are non-performing in nature. There are over 13 telecom circles where BSNL saw a fall in revenues. The telco's Chairman and Managing Director (CMD), P.K. Purwar, has written to the Chief General Managers (CGMs) of these circles that immediate steps should be taken to improve the financial performance.
According to a Financial Express report, in the last year, Purwar said that three circles have come under the category of critically negative, five circles have slipped into the markedly negative category, and five circles have become borderline negative. To make a comeback, these circles need to start turning things around, and Purwar's letter to the CGMs of these circles conveys that only.
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The report added that the MoU (Memorandum of Understanding) between the Department of Telecommunications (DoT) and BSNL to implement the cabinet decision (revival package) requires BSNL to ensure accountability by taking action against non-performers. BSNL received a Rs 1.64 lakh crore revival package from the cabinet in 2022. The government has said that the telco would be profitable by FY27 because of the revival package that has been announced.
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Even the telecom minister Ashwini Vaishnaw had shared his hard stance on the working culture of BSNL and said that any employee that doesn't work well will be forced out of the company. The government would have some tough questions to answer if the state-run telco can't generate profits in the coming years. This is because, between 2019 and 2022, the central government gave BSNL two relief packages, and thus now everyone would be looking for the results.
BSNL is yet to launch 4G using the homegrown technology that it has been working on with Tata Consultancy Services (TCS) for a long time now. BSNL has said that it expects to launch 4G in the second half of 2023.