Date:03/02/2005 URL: http://www.thehindubusinessline.com/2005/02/03/stories/2005020302181100.htm

Back BSNL to get Rs 2,700-cr relief

Our Bureau

New Delhi , Feb. 2

THE Union Cabinet today approved about Rs 2,700 crore worth of relief measures for BSNL for the current and the coming financial years.

This was announced by the Finance Minister, Mr P. Chidambaram, after a Cabinet meeting.

The financial support includes a reimbursement of Rs 1,408.9 crore, which is two-thirds of Rs 2,113.35 crore payable by BSNL towards licence fee (net of universal service obligation levy) and spectrum charges in 2004-05.

The relief measures also include reimbursement of one-third of the licence fee and spectrum charges payable by the telecom corporation in 2005-06.

The Cabinet also approved reimbursement of backlog of Rs 591.02 crore on account of shortfall in the reimbursement of licence fee and spectrum charges paid by BSNL between 2001-02 and 2003-04. The relief to BSNL is aimed at facilitating its working as a healthy PSU.

A senior BSNL official, however, said that the measures would not help BSNL meet its rural commitment and that the Government would need to provide additional financial support to help meet the objective.

The Cabinet has approved a proposal for absorption of Group A officers belonging to the Indian Telecom Service and Posts and Telegraph Accounts and Finance Service in BSNL and MTNL.

With this, the process of allocating requisite personnel to the two telecom PSUs and their corporatisation would be complete.

The absorption of Group B, C and D category of employees has already taken place.