The Hindu Business Line : BSNL may not go in for IPO, after all

New Delhi, Jan. 16 The Communication and IT Minister’s plans for getting Bharat Sanchar Nigam Ltd listed on the bourses may go awry, with the employees union threatening to go on an indefinite strike from February 26 to protest the stake sale.

The issue has also taken political contours with the Communist Party of India (Marxist) saying that selling stakes in profit making companies is against the Common Minimum Programme of the UPA Government.

Top BSNL officials said that there could be a rethink on the proposal given the severe opposition. “The Department of Telecom will review the proposal. It will be difficult to push through the stake sale given the opposition from the company employees. We don’t expect it to happen very soon.”

On Monday, the Communications Minister, Mr A. Raja, had revealed that an initial public offering by BSNL was being considered. As per the plan, which was announced by BSNL officers at a press conference, about 10 per cent stake in the company is to be offloaded to raise about $10 billion.

‘Protest unnecessary’

Senior DoT officials, however, said that the protest was unnecessary as the Government had never said that it had decided to disinvest stake in BSNL. “It is only at a proposal stage and it has been categorically said that a final decision will be taken by DoT after weighing all the issues, including concerns of the employees,” said a DoT official.

The BSNL employees union said that it will issue a notice to the Government on January 24 declaring its intent to go on an indefinite strike. “The Government is playing into the hands of the private sector by considering such a move. This is an issue that we are not prepared to agree, come what may,” said Mr V.A.N. Namboodiri, Convenor, BSNL Union Joint Forum.

CPI (M) opposed

Meanwhile, the CPI (M) Polit Bureau issued a statement which said, “CPI (M) strongly opposes the proposal for its disinvestment. It calls upon the UPA Government to desist from such a move, which will be detrimental to BSNL and public interest.”

Related Stories:
BSNL mulls public issue to raise $10 b
BSNL staff union opposes proposal to divest 20% stake

More Stories on : Telecommunications | Trade & Labour Unions | IPOs | Disinvestment

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