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BSNL’S FINANCIAL POSITION TO BECOME NORMAL BY NEXT QUARTER- SAYS DIRECTOR (FINANCE)

BSNL expects normalcy in liquidity position by Sept quarter

“The BSNL management is making all out efforts to ease the pressure on liquidity.It is expected that in near future, the liquidity position of the company will start improving,” Gupta said in the letter dated May 16.
The BSNL management is making all efforts to ease liquidity pressure being faced by the company, and expects normalcy in liquidity position to be restored by the September quarter, according to a senior official of the crisis-ridden PSU. BSNL Director – Finance, S K Gupta has shot off a letter to all Chief General Managers of telecom circles, flagging the “fiercest ever competition” being faced by the telecom sector and said “predatory tariff offerings by the competitors” has triggered a sharp decline in revenue from services.

“The BSNL management is making all out efforts to ease the pressure on liquidity. It is expected that in near future, the liquidity position of the company will start improving,” Gupta said in the letter dated May 16.

He asserted that normalcy in liquidity position is expected to be restored by the next quarter.

BSNL has been able to sustain its customer base, despite the persistent pressure of competition on its revenue.

“The telecom sector being capital intensive, wherein even to remain in business ‘or’ to ensure business sustainability, the service providers are required to invest in newer technologies at frequent intervals, as technologies evolve at very fast pace,” the letter said.

The cumulative effect of these factors have resulted in liquidity crunch, Gupta added.

(The Economic Times)

DECISIONS OF AUAB MEETING HELD ON 16-05-2019

ALL UNIONS AND ASSOCIATIONS OF BSNL (AUAB)

No: UA/2019/87 17.05.2019                   Circular

To All the General Secretaries, AUAB.

Meeting of the AUAB held on 16.05.2019.

A meeting of the AUAB was held at 15:00 hrs. yesterday the 16.05.2019, at NFTE’s office, New Delhi. Com.Chandeshwar Singh, Chairman, AUAB, presided over the meeting. Com.P.Abhimanyu, Convenor, welcomed every one and presented the agenda items. The attendance of the meeting was as follows:-

BSNLEU: Com. P. Abhimanyu, GS & Convenor, AUAB.

NFTE: Com. Chandeswar Singh, GS & Chairman, AUAB.

SNEA: Com. Sebastin, GS.

AIBSNLEA: Com. Prahlad Rai, GS and Com. Sivakumar, President.

AIGETOA: Com. Badri Kr. Mehta, Vice President.

BSNL MS: Com. Suresh Kumar, GS.

BSNL ATM: Com. Rewati Prasad, AGS.

TEPU: Com. Rasheed Khan, AGS.

Detailed discussions were held with regards to the status of AUAB’s charter of demands, issues related to the revival of BSNL and victimisations on account of our struggles. In-depth discussions also took place with regards to the strategy to be adopted for the settlement of the demands, in the backdrop of the changing political scenario. The following decisions are taken unanimously:-

(1) One more letter is to be written to the Secretary, Telecom, demanding a meeting for the discussion of the issues contained in the charter of demands.

(2) To demand implementation of the assurance of the CMD BSNL, on account of Management’s contribution for the Superannuation Benefits.

(3) To write to the Secretary, Telecom, demanding implementation of one of the important recommendations of the IIM, Ahmedabad, viz., implementation of 3rd Pay Revision to BSNL employees. The DoT is trying to implement all the negative recommendations of the IIM, Ahmedabad, leaving aside the important recommendation of implementing 3rd Pay Revision.

(4) To write to the Prime Minister, with copy to the Cabinet Secretary, etc., demanding immediate filling up of the vacant posts in the BSNL’s Board with regular Directors.

(5) The Department of Pension and Pensioners Welfare has sought certain queries from DoT, on pension revision. The DoT has conveniently not given any reply so far. It is decided to write to the DoT, demanding to give immediate reply to the DoP&PW.

(6) To write to the CMD BSNL demanding immediate settlement of the notices issued for implementation of break-in-service under FR 17 A.

 

  HUAWEI, THE TELECOM GIANT AND THE POLITICAL CONTROVERSY.                                                                                                                     K G Jayaraj

 

It was a shocking news to the world that Ms.Meng Wanzhou, Chief Financial Officer , Huawei was arrested in December, 2018 by the Canadian government at the behest of USA. Ms.Meng is none other than the daughter of Ren Zhengfei, the founder of Huawei. The allegation by USA is that she and Huawei conspired to dodge the American sanctions against Iran and faces extradition. The firm is also accused of trying to steal trade secrets from T-Mobile, an American subsidiary of Deutsche Telecom.Donald Trump also asked his allies to disassociate with Huawei and that is how Canada arrested Meng Wanhou. But other countries including Britain have rejected the US plea. On the contrary, the UK government took a cabinet decision in April, 2019 to allow Huawei to build next generation infrastructure in Britain. Naturally this will invite the wrath of Donald Trump against the Theresa May government. But the decision is generally appreciated  as a balanced stand far from being a betrayal. It is felt that Britain’s approach of using the Huawei’s gear on the edges of 5G network, under close supervision, offers a sensible framework for limited commercial engagement while protecting the security of Britain and its allies.

 Now, USA has banned Huawei citing security issues. This is nothing new. Another Chinese technology firm ZTE was banned in 2017 from doing business with American firms. The consequences were severe that ZTE was forced to stop production as it relies on technology from US firms such as Qualcomm, a chip maker and Google which develops Android, a smart phone operating system. However ZTE was saved from serious crisis after Donald Trump, US President had to agree with Xi Jinping, his Chinese counterpart, to lift the ban.

ASTONISHING GROWTH OF HUAWEI.

Huawei has a humble beginning in 1987. It started with importing telephone switching gear from Honkong and reselling, of course at the bottom of the value chain. Its rise is better compared to China which has grown as the number two economy of the world within a short period. Now, its products- from smartphones to solar panels are sleek, high tech and competitive with any products of its rivals. In a nutshell, Huawei and its mother country, China have become the technological pacesetters in their own right. Naturally it has reflected in its revenues which rose to $105bn in 2018. The firm has a work force of 80,000 in research and development alone. In 2018 China has filed 53,345 patents just behind USA’s 56,142. Of China’s , around one in ten came from Huawei.

Huawei’s ascent, like that of China , has caused a good deal of worry elsewhere in the world. For the last three decades, the firm is still in telecoms-equipment business. Huawei has become one of the world’s biggest suppliers of high-tech kit used to build mobile phone network along with Nokia, a Finnish firm and Ericson, a Sweedish company. However Huawei has been most active in setting the technical standards for the fifth generation-5G- network. These promise big increases in speed and capacity that will improve some existing technologies such as connected cars, and make possible new ones. So, Huawei and China sit at the heart of technologies. This has naturally become a critical piece of future national infrastructure for other countries in the world, particularly the US imperialism. So, Donald Trump has taken such a harsh step of ban not on security issues but out of jealousy and frustration. Actually, no evidence of spying by Huawei has been made public and most emerging economies have no intention of prohibiting Huawei. A ban by a few American allies risks splitting the world in to two blocs. The decision is  also connected to the current trade war initiated by Donald Trump against China and other countries. And as in the case of ZTE Donald Trump will be compelled to lift the ban on Huawei sooner or later.

THE INDIAN EXPERIENCE.

The development program of BSNL in the mobile segment was scuttled during the 1st UPA government by not allowing BSNL to procure the equipments from Huawei, which has quoted the lowest price, citing security issues. The irony was that Huawei equipments were allowed to be procured by private telecom companies and the telecom installations at PMO(Prime Ministers Office) were that of Huawei. We, the BSNL people know well that Huawei opposition was just a ploy to deny the advancement of BSNL for the sake of private telecom companies.  And this was the first deleberate attack on BSNL by the government itself which paved the way for the decline of BSNL.

Marking of PPO number in the bank passbook of Pensioners

Central Pension Accounting Office has issued an OM Regarding marking of PPO number in the bank passbook of Pensioners/Family Pensioners

GOVERNMENT OF INDIA 
MINISTRY OF FINANCE 
DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE 
TRIKOOT-II,BHIKAJI CAMA PLACE,
NEW DELHI-110066

CPAO/IT&Tech/Bank Performance/37 (Vol-III)A/2019/18

23.04.2019

OFFICE MEMORANDUM

Subject:- Regarding marking of PPO number in the bank passbook of Pensioners/Family Pensioners.

Attention is invited to this office OM No. CPAO/Tech/ Clarification / P&PW/20 14-15/426-497 dated-17.09.2014 wherein it was advised to the banks to record the PPO number in the passbook of the pensioners. This office is still receiving complaints from the pensioners that their PPO number is not being recorded by the banks in their passbook leading to problems like transfer of pension account from one bank/branch to another bank/branch, delay in commencement of family pension etc.

Therefore, Heads of all CPPCs and Govt. Business Departments are once again requested to instruct all their bank branches dealing with the pension payments to record the PPO number in all the passbooks of the pensioners/ family pensioners issued by them.

This issues with the approval of Chief Controller (Pension).

(Praful Dabral)
Sr. Accounts Officer (IT & Tech)

THE HINDU BUSINESS LINE EDITORIAL DATED 03-05-2019 ON BSNL

Editorial

Saving BSNL

The Centre needs to act urgently to revive this strategically important PSU

The Centre must take immediate steps to revive Bharat Sanchar Nigam Ltd if it wants to achieve the objective of reaching 100 per cent tele-density in rural areas and keep telecom services affordable for the common man. While private operators have taken over the market with billions of dollars in investments and cost-efficient operations, India’s telecom consumers need a public sector entity like BSNL as an effective counter to any monopolistic venture that may arise due to the ongoing financial stress in the sector. From as many as nine operators, intense competition and below-cost pricing have reduced the number to just three players. The larger surviving operators, who have so far managed to sustain their operations, are under pressure to increase tariffs. The highly leveraged balance sheets of these operators could also force them to slow down the rollout of next-generation data networks to rural and economically unviable areas. In this context, it is important to have a strong PSU telecom company which will not only prevent private players from increasing tariffs as an easy means to escape financial stress but also ensure that rural consumers are catered to.

Reviving BSNL is tough, but not impossible. The once dominant public sector company has been reduced to a mere footnote, thanks to years of political interference and bureaucratic functioning. There have been many attempts earlier to improve the company’s operations, but most of them remain on paper. For example, a committee headed by Sam Pitroda, then advisor to the Prime Minister, offered a 15-point plan to turnaround the PSU, including trimming staff, divesting 30 per cent equity, adopting a managed services model for its various operations and inducting a chief executive from the private sector. This plan has not been acted upon.

Time is running out, though. BSNL has, in 14 years, moved from Navratna status to being declared as a sick PSU, with cumulative FY2009-18 EBIT losses of 82,000 crore. To prevent any further erosion of value, the Centre must do three things. First, divest all the real estate land parcels owned by the company and invest the proceeds into buying all the technology BSNL needs to be at par with private players. Second, implement the proposals of the Pitroda panel, especially those related to cutting down staff costs and hiving off various businesses into different verticals. Here, the Centre can study how British Telecom, once a struggling PSU in the UK, was turned around. Finally, remove all political interference and appoint a strong, independent management to run the company. This will not only secure the future of BSNL, but also ensure that affordable digital services reach every nook and corner of the country.

Old Pension Scheme to NPS Employees selected during 2003 recruited on or after 1.1.2004

 

Old Pension Scheme to NPS Employees selected during 2003 recruited on or after 1.1.2004

Extension of old pension scheme under CCS(Pension) Rules 1972 to the employees who were selected During the year 2003 and who had joined service On or after 01/01/2004

National Council (Staff Side)
Joint Consultative Machinery
for central Government Employees
13-C, Ferozsha Road, New Delhi -110001

No.NC-JCM-2019/Pension/NPS

April , 2019

The Secretary
Government of India
Department of Pension and Pensioners welfare
3rd Floor, Lok Nayak Bhawan.
Khan Market, New Delhi.

Sub: Extension of old pension scheme under CCS(Pension) Rules 1972 to the employees who were selected During the year 2003 and who had joined service On or after 01/01/2004.

Ref: 1) Judgment of the Hon’ble High Court of Delhi
Judgment in WP (C)3834/2013 & in WP(C)
2810/2016 dtd. 27/03/2017.

2) Min. of Home Affairs (Pay & Accounts Office)
CRPF Lt. No.PAO/CRPF/MHA/NPS/DA-9(1)/
2018-19/797, dtd. 15th March 2019.

Sir,

You are aware that the Staff Side of National Council(JCM) is representing in various forums to withdraw the National Pension System and to restore the old Pension Scheme under CCS(Pension) Rules 1972, to the Defence Civilian Employees recruited on or after 01/01/2004, since the NPS is determental to the employees as there is no defined guarantee for Pension during the old age. This was one of the important demand, for which the NJCA has served Strike notice on the Govt. For observing In-definite Strike. However due to the assurance given by the Group of Ministers, the proposed In-Definite Strike was deferred.

Sir, at present based on the Judgment of the Hon’ble High Court of Delhi in the above referred cases, the Ministry of Home Affairs have decided to extend the benefits of the old pension scheme under CCS(Pension) Rules 1972, to the Para-Military forces who were selected during the year 2003, but joined service on or after 01/01/2004. In this regard your kind attention is drawn to the letter of Ministry of Home Affairs, dtd. 15th March 2019 referred at (2) above (copy enclosed for ready reference). The Ministry of Home Affairs have decided to transfer the NPS contribution of the concerned employees to the GPF Scheme and also to bring the employees who were selected during 2003 on the basis of notification issued during 2002/2003 and joined service on or after 2004, under the coverage of CCS(Pension) Rules 1972.

A large number of Central Govt. Employees in various Departments Like Railways, Defence, Postal and other Departments are similarly placed. These employees were selected for appointment during the year 2003, based on the employment notification issued during 2002/2003 however due to delay in receiving the Attestation Forms(Police Verification Report), Medical fitness etc., they were forced to join service on or after 01/01/2004. Due to no mistake of theirs’ they were brought under the coverage of NPS, thereby denying them the benefit of GPF and Defined Guaranteed Pension under the CCS(Pension) Rules 1972. These employees also have now started representing for extending the benefit given to the Home Ministry Staff for them, and their demand is fully justified and is covered under the Judgment of Hon’ble High Court of Delhi.

Sir, in view of the above, it is requested that you may kindly look into the matter and arrange to issue instructions for extending the benefit given to the Para-Military forces in the Home Ministry to the similarly placed Central Govt. Employees by extending them the benefit of Old Pension Scheme under CCS(Pension) Rules 1972. A copy of your instruction may please be endorsed to this office.

Thanking you,

Yours faithfully
(Shiv Gopal Mishra)
Secretary

Jio’s ARPU falls sharply – Good news for the industry..

It is a good news for the Indian telecom industry that the ARPU of Reliance Jio is falling sharply. ARPU is the total revenue of the operator, divided by the number of customers that the company is having. So, a company will become more profitable, if it’s ARPU increases, and vice-versa. . News has come that Reliance Jio’s ARPU keeps falling. It’s ARPU was Rs.154 in December 2017. Then, it fell to Rs.130 in December, 2018. It has fallen further to Rs.126.2 in March 2019. It is a known fact that all the telecom companies, including BSNL have gone into loss, because of the brutal tariff war unleashed by Jio. It wants to close down all other telecom companies, so that it can monopolise the telecom industry and thereafter loot the people. Already industry analysts have predicted that telecom tariffs will increase soon. Now, the sharp fall in Jio’s ARPU indicates that Jio has to increase it’s tariffs soon, which will be a good news for BSNL and other operators.

(BSNLEU Website)

BALASORE DISTRICT GENERAL BODY MEETING.

Image may contain: 3 people, people eating and people sitting

A well attended generalbody meeting of Balasore District was held at Bhadrak on 21-04-2019. Com.Gadadhar  Panda , District President controlled the proceedings. Com.P K Pradhan, District Secretary welcomed all and presented a brief report. Coms. A C Mohanty, Circle Secretary and A Dhupal, CHQ Vice President spoke elaborately on the issues of pension revision, revival of BSNL and decisions of Kolkata AIC. Coms. Pratap Ch Jena, Circle Org Secretary and Sridhar Das, Circle Asst Secretary also addressed.