MTNL MD Admits Salary Of August Pending, BSNL Facing the Same crisis
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MTNL MD Admits Salary Of August Pending, BSNL Facing the Same crisis

MTNL- Next Big Brand
Pritish raj
Written by Pritish raj
[email protected] | Noida | Published on: September-05-2019 06:32 PM
  • As per data shared in Lok Sabha in June this year, the market share of MTNL in the two circles where it operates ( Mumbai and Delhi) has plunged to 6.95 percent at the end of 2018-19 from 7.37 percent in 2016-17.
  • The employee cost of BSNL is 75.06 percent and that of MTNL is 87.15 percent of their total income which is much more than the private telecom companies which vary between 2.9 to 5 percent.

Facing the cash-crunch MTNL has not been able to plat wages to its staff for July and August and is making a sincere effort to release at least a portion of the dues at the earliest, said a top official of the company.

“Salary payment for two months, July and August, are pending. We have cleared it (wages) till June,” said Sunil Kumar, who recently assumed additional charge as chairman and managing director of Mahanagar Telephone Nigam Ltd (MTNL).

He declined to give a time-frame for clearing the outstanding salaries, but said, “We are trying sincerely to release at least one month’s salary at the earliest.”

On being asked how the state-owned organization is planning to meet the salary obligations, the MTNL chief said it is looking to pay it from the accumulated revenue.

He also mentioned that the deadline for the same was yesterday but they are considering whatever is possible and doing at the earliest. However, he didn’t promise any time frame.

Both the state-owned telecom public sector units Mahanagar Telephone Nigam Limited (MTNL) and Bharat Sanchar Nigam Limited (BSNL) are distressed and incurring losses while facing the problems of clearing staff salaries in the recent past.

Both the loss-making telecom entities have approached the telecom department for immediate help as they are facing financial stress and cash crunch. This has increased due to the tariff war triggered by the disruption with the entry of Reliance Jio. Department is considering the revival plans for the telecom firms.

The employee cost of BSNL is 75.06 percent and that of MTNL is 87.15 percent of their total income which is much more than the private telecom companies which vary between 2.9 to 5 percent.

As per data shared in Lok Sabha in June this year, the market share of MTNL in the two circles where it operates ( Mumbai and Delhi) has plunged to 6.95 percent at the end of 2018-19 from 7.37 percent in 2016-17.

Recently, the Government was also looking at the merger of both entities in order to reduce the cash crunch and financial distress. 

Bharat Sanchar Nigam Limited (abbreviated BSNL) is an Indian state-owned telecommunications company headquartered in New Delhi. Mahanagar Telephone Nigam Limited

(MTNL) is a state-owned telecommunications service provider in the metro cities of Mumbai and New Delhi in India and in the island nation of Mauritius in Africa.

With Jio rapidly disrupting the Indian telecom market with its dirt-cheap rates and has launched Giga fiber service too it is gonna be tough for both the entities to stay in the competition. BSNL and MTNL certainly lacked the innovative edge and insights towards consumer demands, hence failing to keep up the pace with the leaders.

About the author

Pritish raj

Pritish raj

Pritish Raj is a content writer at Next Big Brand. Hailing from the diversified state of Bihar, he is an engineer by education who chooses the way of poetry, photography, and writing to kick off his career.
Highly enthusiastic about brands and startups, he aims to be a travel content creator.

9113327413 | A-73, Hackerspace, Noida sector- 2 Noida UP 201301

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