Cong Accuses NDA Govt of Deliberate Incapacitation of MTNL, BSNL

Congress spokesperson Pawan Khera asked why the government is blocking allocation of 4G spectrum to BSNL and MTNL.

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(Photo: Reuters)

The Congress on Thursday, 6 June accused the BJP-led NDA government of systematic neglect and deliberate incapacitation of state-owned MTNL and BSNL, alleging its policies have led to complete financial chaos in the public sector undertakings.

Congress spokesperson Pawan Khera asked why the government is blocking the allocation of 4G spectrum to BSNL and MTNL while private players are launching 5G service.

Addressing a press conference, he said the future of 1,74,312 employees of BSNL and 45,000 employees of MTNL is in grave danger.

"This is deliberate bleeding and enfeebling of a government PSU by not allowing competing with private players in a highly expanding market, with rapidly developing technologies," he alleged.

The BJP government needs to focus on some critical public sector undertakings (PSUs). There has been a systematic neglect and deliberate incapacitation in state-owned MTNL and BSNL. The BJP government's policy has resulted in complete financial chaos, Khera said.

He said the latest independent audit report of MTNL reflects that the PSU is on the verge of shutting down, as its net worth has been fully eroded and current liabilities exceed the current assets substantially.

“It is doubtful that the company can continue,” he said, adding that under the Congress-UPA government in 2013-14, the MTNL posted a net profit of Rs 7,838 crore, but in 2019 under the BJP government, it is reeling under a net loss of Rs 3,390 crore.

"Thus the BJP government's policies are responsible for a total loss of Rs 11,228 crore in past five years. The revenues during 2019 came in lower by 16 per cent at Rs 1,987.80 crore compared to the last year and were the lowest in six years," he alleged.

Khera said the Congress demands that the new BJP government takes immediate steps so that MTNL/BSNL start their 4G/5G services.

"The BJP government should moot a recapitalisation package for MTNL and BSNL. If BJP government can 'bail out' ILFS through LIC, scam ridden GSPC through ONGC, IDBI Bank through LIC, then it can surely save MTNL/BSNL," he said, adding that special incentives must be provided to state-owned telecos to make them more competitive.

“Where is the fault line in your policy, why is a company, which was a profitable venture under the UPA, is registering losses every year for the last five years consecutively,” he asked.

Alleging that these companies are being "forced" to use obsolete technology, he said, "As a result, you see these companies bleeding to a slow death, slow but certain death".

Khera called for immediate and concrete steps to reduce the losses of MTNL and BSNL.