The Hindu Business Line : BSNL autonomy call gets no response — Rs 68,000-cr PSU unable to tap new revenue streams

DESPITE being one of the largest public sector units (PSUs) in the country with a net worth of close to Rs 68,000 crore, Bharat Sanchar Nigam Ltd (BSNL) continues to be denied higher financial autonomy to form joint ventures and float subsidiaries abroad.

According to official sources, while much smaller telecom PSUs such as Mahanagar Telephone Nigam Ltd (MTNL), ITI Ltd and TCIL are relatively free to form joint ventures both within the country and outside subject to certain limits, allowing them to diversify their portfolio, BSNL continues to be hamstrung by the fact that no clear guidelines have been provided to it.

The company is much bigger than all these PSUs put together, however when it comes to joint ventures and subsidiaries, it does not have the same kind of freedom that has been granted to others, they said.

Although the Union Communications Minister, Mr Arun Shourie, has stated that his Ministry would not interfere in the day-to-day functioning of PSUs and allow them be board-run companies, BSNL has not been able to set up any joint venture or subsidiary that would allow it to embark on additional revenue streams like MTNL, ITI and TCIL.

For that matter, they pointed out that MTNL has formed a joint venture company in the name of United Telecom Ltd (UTL) with TCIL, VSNL and NVPL (Nepal Ventures Pvt Ltd., a Nepalese Company). The company provides wireless in local loop based basic services in Nepal. Further in a joint venture with TCIL, it has also participated in the operation and maintenance proposal for Pacifictel S.A. Equador. It is in the process of getting feasibility and due diligence for participation in a joint venture in Kenya and as a second telecom operator in Mauritius.

ITI Ltd, on its part, has set up quite a few joint ventures such as India Satcom Ltd, for supply of satellite terminals for data communication in partnership with Equatorial Pacific International Company - USA and Unit Trust of India.

TCIL has substantial stake in Tamil Nadu Telecommunications Ltd, Intelligent Communications Systems India Ltd, TCIL Bell South. It also has stake in overseas ventures, TCIL Saudi Co Ltd, United Telecom Ltd and TCIL Nigeria Co Ltd. The sources noted that although BSNL had written to the Department of Public Enterprises (DPE) to grant it the autonomy that has been provided to various other PSUs who have been categorised as "navratna" and "mini-ratna" companies there has been no response so far. While MTNL is a navratna, ITI and TCIL are mini-ratna companies.