INSUBCONTINENT EXCLUSIVE:
avoidable expenditures on contract labour and do a cost-benefit analysis of the legacy landline and broadband exchanges as well as towers to
achieve network optimisation."During the various review meetings with the higher management, the liquidity position and financial crunch in
BSNL had been discussed and it was decided to issue necessary instructions/guidelines immediately to reduce the expenditure in the various
items including outsourcing Contract Labour," said a letter from BSNL's corporate office on June 4 to all circle heads across the
country.These contract labours who are outsourced by BSNL are hired for administrative/operational activities in fields -- housekeeping,
be taken to reduce expenditure on outsourcing in the administrative/operational activities in field -- house keeping, security and data
Thus a through review of all outsourcing contracts involving labour should be done with a view to reduce expenditure and obtain savings,"
The action may be taken in cases where revenue generation is minimal or less compared to expenditures incurred on the same other than salary
exchanges, broadband networks elements, and towers in the context of revenue earned from such exchanges or towers and the expenditure done
critical to network or have potential for revenue increases to offset the losses due to high expenditure on such exchanges," said the
communication.The PSU has sought performance status report by June 20.BSNL is expecting normalcy in cash flows in the second quarter
(July-September) of FY20, according to its Director (Finance) who had blamed the "predatory pricing" for the current crisis in the sector
and in BSNL."The liquidity position of the company may start improving and normalcy could be restored in the next quarter," SK Gupta, BSNL
director (finance), had stated in a May 16 letter to the chief general managers and financial advisors of all its telecom circle heads and
district maintenance regions.BSNL has been incurring losses for the last many years and except in 2014-15 where it had got an operating
BSNL had registered a profit of Rs 10,000 crore till 2004, but recorded a loss of Rs 8,000 crore during the next ten years
earlier this year pushed BSNL to delay salary of February by one-and-half-months.
