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Govt mulls preferential shares to BSNL staff

Govt mulls preferential shares to BSNL staff
PTI
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First Published: Mon, Jul 27 2009. 05 03 PM IST
Updated: Mon, Jul 27 2009. 05 03 PM IST
New Delhi: The Union government on Monday said it was mulling to give preferential shares for employees of BSNL as and when the consensus is reached on the initial public offer from the telecom operator.
“I assure you it is not a question of disninvestment or privatization. If it is possible, we can go in for 10-20% IPO,” telecom minister A. Raja said in the Rajya Sabha.
He said discussions are on with trade unions on the issue but no decision on IPO has yet been taken.
“Preferential shares can be given to workers,” Raja said.
He admitted BSNL profit has come down to Rs500 crore citing reasons as delay in expansion plans owing to court cases on tenders for new equipment floated by the public sector unit.
“Because of the court cases we are not able to build up the expansion,” he said adding in Delhi even urban development and home ministry do not allow the companies to put up more towers.
However, BSNL will soon place advanced purchase order for equipment to roll out 93 million connections.
Responding to complaints on call drops, he said, “It is not common as the quality of service is being monitored by Trai.”
BSNL and MTNL have to live with fierce competition while facing regular impediments of PSUs. Besides, negotiations for procurement of equipment take time in the absence of Chinese vendors which cannot be used in the border areas.
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First Published: Mon, Jul 27 2009. 05 03 PM IST
More Topics: BSNL | A Raja | MTNL | Rajya Sabha | Corporate News |