The situation at the state-owned telecom firm, Bharat Sanchar Nigam Limited (BSNL), is going from bad to worse with each passing month. Once the pride of the government of India, today the BSNL is on the verge of collapse. The public sector company has nearly Rs 13,000 crore as outstanding liabilities, which have made running its business difficult. The situation is so bad that BSNL authorities have been forced to beg the central government for fund in order to pay salaries to its employees. If the government of India does not extend help, the BSNL will not be able to pay salaries for the month of June.
Earlier, the state-owned telecom firm had failed to pay the salaries for February to around 1.76 lakh employees due to its financial crisis. This was the first time in the history of its existence that the company defaulted in payment of monthly salaries. The fully government-owned corporation is undergoing a major cash crunch due to the price war with private companies. The BSNL has not been able to compete with the private companies. Even in a state like Arunachal Pradesh, where it once dominated the market, is today losing out to the private players. The government of India has failed to prepare any revival roadmap for the company. In fact, Prime Minister Narendra Modi was seen appearing in the advertisement of Jio mobile service but has never promoted the BSNL. This kind of attitude from the leadership of the present government has also largely contributed to the downfall of the BSNL. There is lack of will in the present government to streamline its own companies which are struggling to survive. Now the situation is really bad, and the government of India will have to immediately intervene. The government cannot afford to make 1.76 lakh employees go hungry.