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Latest News inf. By Ashok Hindocha





Wednesday, June 29, 2011

Submiissiion off memorandum on some off the pressiing iissues off the emplloyees – reg..inf. by Ashok Hindocha M-09426254999 M-094262 54999

Recognised Union in BSNL

(Regiistered Under IIndiian Trade Uniion Act 1926.. Regn..No..4896)

CHQ:Dada Ghosh Bhawan,, Opp.. Shadiipur Bus Depot..,, New Dellhii – 110008

Emaiill:,, websiite:

P.. Abhiimanyu Phone:: ((O)) 011--25705385

Generall Secrettary Fax:: 011-- 25894862

BSNLEU/124 ((UF)) 28..06..2011


Shrii A..K.. Garg,,

Diirector ((HR)),, BSNL,,

Bharat Sanchar Bhawan,,

Janpath,, New Dellhii – 110 001

Sub:: Submiissiion off memorandum on some off the pressiing iissues off the emplloyees – reg..


II am encllosiing herewiith a memorandum on some off the pressiing iissues off the emplloyees.. The

Natiionall Steeriing Commiittee off the Uniited Forum,, whiich helld iit’’s meetiing on 25..06..2011,, has

expressed concern over the iinordiinate dellay iin the settllement off some off the pressiing iissues off the

emplloyees.. The meetiing has giiven diirectiion to submiit a memorandum off such iissues to the

management.. The meetiing has allso deciided to resort to trade uniion actiions,, iiff the iissues are not

settlled wiithiin a reasonablle tiime..

Thankiing you,,

Yours siincerelly,,


Generall Secretary

Encll:: AA

Memorandum submiitted to the Diirector (HR),, BSNL,, on some of

the pressiing iissues of the emplloyees

(1) Voluntary Retirement Scheme

IItt iis llearrntt tthatt BSNL has sentt a VRS prroposall fforr tthe apprrovall off tthe DoT.. BSNLEU and tthe

Uniitted Forrum sttrronglly oppose tthe iinttrroducttiion off any VRS iin BSNL.. The arrgumentt tthatt BSNL

has gone iintto lloss because off tthe huge wage biillll off tthe emplloyees iis unttenablle.. We wiish tto

poiintt outt tthatt iitt was wiitth tthe same numberr off emplloyees,, BSNL earrned Rs..10,,000 crrorre prroffiitt

iin 2004--05.. We allso wiish tto poiintt outt tthatt iitt was tthe wrrong polliiciies off tthe govtt.. tthatt has putt

BSNL iintto ttoday’’s miiserrablle condiittiion.. When morre tthan 10,,000 emplloyees arre rrettiirriing everry

yearr,, absolluttelly ttherre iis no necessiitty tto brriing iin a VRS.. The ffactt tthatt VRS coulld nott sallvage

MTNL ffrrom iitt’’s crriisiis shoulld serrve as an eye--openerr fforr tthose who wantt VRS iin BSNL..

Hence,, we urrge upon tthe BSNL managementt and DoT tto giive up tthe pllan tto iinttrroduce VRS

iin BSNL..

(2) Productivity Linked Incentive

The emplloyees who arre worrkiing iin BSNL have been gettttiing PLII allmostt fforr tthe pastt 30 yearrs..

Forr tthe ffiirrstt ttiime,, tthey werre deniied PLII iin 2010.. PLII paymentt was deniied on tthe pllea tthatt

BSNL diid nott earrn any prroffiitt iin 2009--10.. The emplloyees arre verry much diisappoiintted due tto

tthe non--paymentt off PLII.. IIn no way tthe emplloyees arre rresponsiiblle fforr tthe ffiinanciiall crriisiis

ffaced by BSNL.. IItt iis tthe wrrong polliiciies off tthe govtt.. and tthe iineffffiiciiency off tthe managementt

tthatt have lled BSNL iintto lloss.. Hence,, a new PLII fforrmulla shoulld be evollved so tthatt tthe

emplloyees gett PLII,, iirrrrespecttiive off tthe ffactt tthatt tthe company earrns prroffiitt orr nott..

(3) Provision of SC/ST reservation in Non-Executive Employees Promotion

Policy and conducting a drive to fill up the SC/ST back log vacancies

((ii)) BSNL has iinttrroduced tthe Non--Executtiive Emplloyees Prromottiion Polliicy,, viide

7//2008--TE IIII datted 23..03..2010.. As perr parra 6..2 off tthe polliicy,, tthe prroviisiions rrellattiing tto

applliicattiion off rroastterrs arre nott applliicablle.. Howeverr,, as a concessiion tto tthe SC//ST

emplloyees,, onlly tthe grradiing crriitterriia have been rrellaxed,, iin comparriison tto tthe OC

emplloyees.. Thiis has nott giiven rrelliieff tto tthe SC//ST emplloyees.. Hence,, we demand tthatt

tthe prroviisiions rrellattiing tto tthe applliicattiion off rroastterrs shoulld be made applliicablle iin tthe

Non--Executtiive Prromottiion Polliicy..

((iiii)) Postts meantt fforr tthe SC//ST emplloyees arre llyiing unffiilllled iin varriious Non--Executtiive cadrres..

We rrequestt tthatt tthe managementt shoulld conductt a speciiall drriive tto ffiillll up tthose back--llog


(4) Implementation of DPE OM dated 02.04.2009 regarding increasing fitment

benefit from 68.8% to 78.2% w.e.f. 01.01.2007

The DPE has iissued orrderr,, viide iitt’’s OM datted 02..04..2009 fforr merrgerr off 78..2% IIDA,, w..e..ff..

01..01..2007.. IItt has been iimpllementted iin ottherr PSUs.. Butt iin BSNL wage rreviisiion has been

done by merrgiing 68..8% IIDA onlly.. Thiis iis viiollattiion off tthe DPE orrderr.. The emplloyees arre putt

tto much lloss due tto non--iimpllementtattiion off tthe saiid DPE orrderr.. On many occasiions ourr uniion

has rraiised tthiis iissue,, howeverr iitt rremaiins unsettttlled.. Hence,, merrgerr off 78..2% IIDA,, w..e..ff..

01..01..2007 may be done..

(5) Introduction of NE 12 pay scale

As perr tthe Non--Executtiive Prromottiion Polliicy agrreementt siigned on 30..10..2008,, NE--12 pay

scalle iis tto be iinttrroduced fforr tthe ttiime bound upgrradattiion off tthe offffiiciialls iin tthe NE--11 pay

scalle.. Afftterr prrollonged dellay,, tthe BSNL CO,, viide iitt’’s lletttterr no..BSNL//39--3//SR//2006//Voll--IIIIII

datted 08..09..2010 has prroposed tthe pay scalle off NE--12 scalle Rs..16380--30640 fforr NE--12

scalle.. BSNLEU,, viide iitt’’s lletttterr no..BSNLEU//506 ((NEPP)) datted 10..10..2010,, demanded tthe

scalle off Rs..16390--40490 as NE--12 scalle.. IIn tthe diiscussiion helld bettween tthe uniion and tthe

managementt,, on 22..06..2011,, an underrsttandiing has been rreached tthatt tthe NE--12 scalle shallll

be Rs..16390--33830.. The uniion has allso demanded tthatt tthiis pay scalle shoulld be made

effffecttiive ffrrom 01..01..2007,, ii..e.. tthe datte ffrrom whiich rreviised pay scalles arre iimpllementted iin

BSNL.. IItt iis rrequestted tthatt BSNL shoulld apprrove tthiis scalle wiitthoutt ffurrttherr dellay..

(6) The BSNL CO implemented the NEPP w.e.f. 23.03.2010. However, in the

order issued by BSNL, many conditionalities which were not accepted by

the union have been inserted. These conditionalities are creating hardships

to the employees. Hence, we have sought the following modifications which

have already been discussed with the management on a number of

occasions. But no improvement has come.

((a)) Postt based promottiion on 1--10--2000:: Prromottiion polliicy agrreementt,, viide parra 8 says ““afftterr

1--10--2000 and befforre nottiiffiicattiion off tthiis polliicy”” and nott ““on orr afftterr 1--10--2000 and befforre

nottiiffiicattiion off tthiis polliicy”” and tthe same was menttiioned iin parra 6..4 off tthe prromottiion polliicy

orrderr datted 23--3--2010 whiich says ““afftterr 1--10--2000 and befforre nottiiffiicattiion off tthiis polliicy””,, and

nott ““on orr afftterr 1--10--2000 and befforre nottiiffiicattiion off tthiis polliicy””.. Therrefforre any postt based

prromottiion orr ttiime bound prromottiion giiven on 1--10--2000 shoulld nott be countted as prromottiion

underr NEPP and allll such offffiiciialls shoulld be grrantted ffiirrstt NEPP on 1--10--2004..

((b)) Postt based promottiion afftter 1--10--2000 and beffore 1--10--2004:: IIn tthe prromottiion Polliicy

agrreementt no wherre has tthe uniion agrreed fforr counttiing postt based prromottiion as NEPP

prromottiion.. IIn tthe phrrase ““OTBP//BCR//Grrade--IIV//ACP ettc..,,”” iin tthe agrreementt tthe worrd ““ettc””

does nott giive any scope fforr iinclludiing postt based prromottiion fforr counttiing agaiinstt prromottiion

underr NEPP.. IItt means any prromottiion off ttiime bound natturre jjustt lliike OTBP//BCR //ACP ettc.. No

wherre iin tthe agrreementt iitt was menttiioned tto ttrreatt postt based prromottiion as parrtt off NEPP.. IIn

case tthe postt based prromottiion has tto be ttrreatted as NEPP prromottiion,, tthen,, as perr tthe

prroviisiions off tthe Agrreementt as wellll as tthe Orrderr on NEPP,, tthe offffiiciiall shoulld have tthe opttiion

tto fforrgo such prromottiion he gott iin orrderr tto gett hiis ffiirrstt prromottiion as perr NEPP on 1--10--2004..

Butt tthiis iis nott possiiblle siince postt based prromottiion cannott be surrrrenderred.. Hence postt based

prromottiion shoulld nott be ttrreatted on tthe same ffoottiing as tthatt off OTBP//BCR//ACP.. Therrefforre

fforr tthe offffiiciiall who gott postt based prromottiion afftterr 1--10--2000 and befforre 1--10--2004 shoulld be

giiven hiis ffiirrstt prromottiion underr NEPP,, ffourr yearrs afftterr such postt based prromottiion..

As perr tthe cllarriiffiicattiions iissued iin case off tthe prromottiion polliicy fforr executtiives,, viide BSNL No..

400--29//2007--Perrs--II dtt 30--5--2007 iitt was cllarriiffiied tthatt iin case off tthe executtiives who avaiilled postt

based prromottiion on 1--10--2004 orr befforre,, tthe ffiirrstt up grradattiion elliigiibiilliitty shoulld be detterrmiined as

perr tthe prroviisiions conttaiined iin Parra 1..0((ii))((b))((3..1)) off tthe Prromottiion Polliicy orrderr off tthe executtiives

as perr whiich tthe ffiirrstt up grradattiion woulld be due fforr consiiderrattiion on compllettiion off ffourr yearrs off

serrviice iin tthe currrrentt IIDA scalle ii..e..,, iin tthe scalle off tthe postt tto whiich tthe executtiive gott prromottiion

on 1--10--2004 orr befforre.. Therrefforre fforr non--executtiives allso tthiis same rrulle has tto be applliied and

tthose who gott postt based prromottiion on orr befforre 1--10--2004 shoulld be giiven ffiirrstt up grradattiion on

compllettiion off 4 yearrs serrviice iin tthe prromotted postt’’s pay scalle..

((c)) Postt based promottiion ffrom 1--10--2004 tto 23--3--2010 :: The offffiiciiall shoulld be giiven hiis ffiirrstt

up--grradattiion as perr NEPP on 1--10--2004 iin case he diid nott gett any prromottiion underr

OTBP//BCR//GR--IIV//ACP afftterr 1--10--2000 and befforre 1--10--2004.. On compllettiion off tthe

prrescrriibed rresiidency perriiod iin tthe currrrentt pay scalle afftterr such postt based prromottiion,, he has

tto be giiven second up--grradattiion as perr NEPP.. Had tthe orrderrs fforr NEPP werre iissued allong

wiitth tthe orrderrs fforr converrsiion ffrrom CDA scalles tto IIDA scalles w..e..ff 1--10--2000,, tthese offffiiciialls

woulld have gott NEPP prromottiion on 1--10--2004 and ttherreafftterr tthey woulld have gott ttheiirr postt

based prromottiion.. Morreoverr,, grranttiing NEPP on 1--10--2004 fforr tthose who gott postt based

prromottiion on 24--3--2010 and denyiing tthe same tto tthose who gott postt based prromottiion on 23--

3--2010 wiillll be iirrrrattiionall.. IItt iis allso tto be notted tthatt tthe BSNL iissued cllarriiffiicattiion No.. 3 viide iitts

ciirrcullarr No.. 13--2//2010--TE datted 6--1--2011 as perr whiich iin tthe case off tthe offffiiciiall who gott

prromottiion underr OTBP//BCR//Grrade--IIV//ACP ettc bettween 1--10--2000 and 30--9--2004 and gott

postt based prromottiion on orr afftterr 1--10--2004,, tthe OTBP//BCR//Grrade--IIV//ACP ettc prromottiion

avaiilled befforre 30--9--2004 iis tto be ttrreatted as ffiirrstt up grradattiion and tthe postt based prromottiion

on orr afftterr 1--10--2004 iis tto be ttrreatted as second up grradattiion underr NEPP.. On siimiillarr

grrounds tthe offffiiciiall who gott postt based prromottiion on orr afftterr 1--10--2004 has tto be giiven ffiirrstt

up grradattiion on 1--10--2004 underr NEPP iin case he diid nott gett any up grradattiion afftterr 1--10--

2000 and befforre 1--10--2004..

(7) Conversion of LDC TA to TOA and subsequent promotion to Sr. TOA

The LDC TA converrtted tto TOA on 1--7--2004 and prromotted tto Srr..TOA iin 2007 have nott

complletted tthe qualliiffyiing serrviice prrescrriibed iin NEPP fforr ttiime bound up--grradattiion,, iin any pay

scalle.. The converrsiion tto TOA and tthe prromottiion tto Srr..TOA cannott be accountted agaiinstt

OTBP//BCR//GR--IIV//ACP ettc as dettaiilled above,, and hence shoulld nott be countted as ttiime

bound up--grradattiion as perr NEPP.. Hence tthey shoulld be giiven ffiirrstt up--grradattiion underr NEPP

on compllettiion off prrescrriibed qualliiffyiing serrviice off 4 yearrs ((siince allll off tthem arre DoT rrecrruiitted))

afftterr Srr.. TOA prromottiion..

(8) Upgradation of Driver’s pay scale on account of change in RRs not to be

counted as NEPP promotion.

The drriiverrs’’ pay scalle was upgrraded ffrrom 3050--4590 tto 3200--4900 as perr tthe rreviised RRs,,

wiitth effffectt ffrrom 28--1--2002 and allll tthe Drriiverrs iin tthe orrdiinarry grrade werre pllaced iin tthiis

upgrraded scalle.. No agrreementt iis ttherre bettween managementt and uniion tto countt such

pllacementt on accountt off change iin RRs as tthe ffiirrstt up grradattiion underr NEPP.. IItt cannott be

ttrreatted as ttiime bound up grradattiion.. Therrefforre allll such drriiverrs shoulld be giiven ttheiirr ffiirrstt up

grradattiion underr NEPP ffourr yearrs afftterr such pllacementt ii..e on 28--1--2006.. ((Thiis poiintt was nott

diiscussed iin tthe meettiing helld on 26--4--2011.. We arre now submiittttiing fforr consiiderrattiion..))

(9) The extra increment granted in lieu of Grade IV promotion, one year before

retirement, should not be denied in case of the officials who wish to

continue in the OTBP, BCR and Grade IV.

Siince tthiis one iincrrementt iis parrtt and parrcell off tthe OTBP,, BCR and Grrade IIV Scheme,, and

DoT acceptted iitt and grrantted pensiion on iitt,, iitt cannott be deniied,, iiff an offffiiciiall optts tto conttiinue

iin tthe scheme.. The agrreementt diid nott prroviide fforr such wiitthdrrawall and any exiisttiing prriiviillege

cannott be wiitthdrrawn uniillatterralllly.. IItt iis rrequestted tto conttiinue tthe iincrrementt fforr such offffiiciialls

and allso one morre chance tto change opttiion fforr tthe elliigiiblle offffiiciialls afftterr accepttiing fforr

conttiinuattiion off tthiis iincrrementt..

(10) Upgradation of TTA pay scale on 1-10-2000

The pay scalle off TTA cadrre was upgrraded ffrrom NE--8 tto NE--9 w..e..ff 1--10--2000 as perr tthe

earrlliierr deciisiion off tthe DoT.. Thiis pay scalle rreviisiion off tthe TTA cadrre does nott ffallll wiitthiin tthe

cattegorry off ““ttiime bound up grradattiion off pay scalle””.. Hence,, tthiis pay scalle rreviisiion off TTA

cadrre w..e..ff.. 01..10..2000,, shoulld nott be ttrreatted as a parrtt off tthe NEPP.. The prromottiion polliicy

agrreementt as wellll as tthe orrderr iissued on iitt on 23--3--2010 prroviide fforr counttiing

OTBP//BCR//Grrade--IIV//ACP ettc as ffiirrstt up grradattiion underr NEPP iiff iitt iis giiven ““afftterr”” 1--10--

2000 and nott ““on 1--10--2000”” ((see parra 8 off tthe prromottiion polliicy agrreementt and parra 6..4 off

tthe NEPP orrderr datted 23--3--2010)).. Therrefforre tthiis cllarriiffiicattiion fforr counttiing TTA pay scalle up

grradattiion on 1--10--2000 as ffiirrstt NEPP iis viiollattiion off tthe Agrreementt on NEPP and allso

viiollattiion off tthe orrderr iissued on iitt on 23--3--2010.. Hence tthiis up grradattiion as wellll as any up

grradattiion on 1--10--2000 shoulld nott be countted as ffiirrstt up grradattiion underr NEPP..

(11) TSM regularized as RM on 1-10-2000

Siince tthey arre ttrreatted as Goverrnmentt emplloyees and arre grrantted Goverrnmentt pensiion and

GPF,, fforr prromottiion purrposes underr NEPP allso tthey arre tto be ttrreatted as Goverrnmentt

emplloyees onlly.. Morreoverr ttheiirr TSM serrviice was countted fforr iincrrementts whiille ffiixiing ttheiirr

pay on appoiinttmentt as RM and tthey werre grrantted EL durriing TSM serrviice whiich was ttaken

iintto accountt even afftterr appoiinttmentt as RM.. The counttiing off TSM serrviice fforr iincrrementt,, GPF,,

lleave and pensiion cllearrlly esttablliish tthatt tthey have perrfforrmed dutty iin DoT and hence arre tto

be ttrreatted as DoT appoiinttees onlly.. Thiis iis conffiirrmed by DoT iittsellff.. The DoT Orrderr No.. 22--

2//2006--SNG datted 20--10--2006 confferrrriing elliigiibiilliitty fforr tthese offffiiciialls fforr Prresiidenttiiall Orrderrs

cllearrlly menttiioned,, ““IItt iis ffurrttherr cllarriiffiied tthatt iin rrespectt off tthose Casuall Labourrerrs who werre

nott haviing TSM sttattus as on 30--9--2000 and who have been rregullarriized iin BSNL afftterr 1--10--

2000,, ttheiirr sttattus wiillll be off a PSU appoiinttee and ttherrefforre no Prresiidenttiiall Orrderrs need be

iissued iin such cases..”” The iimplliicattiion iis tthatt tthe TSMs rregullarriized as RM on 1--10--2000 arre

nott PSU appoiinttees and hence arre DoT appoiinttees and tthe casuall llabourrerrs rregullarriized as

RM on 1--10--2000 arre PSU appoiinttees.. Therrefforre,, siince tthe TSM rregullarriized as RM on 1--10--

2000 iis DoT appoiinttee,, he has tto be giiven ffiirrstt upgrradattiion underr NEPP on 1--10--2004,, on

compllettiion off 4 yearrs serrviice iin BSNL..

(12) When the official forgoes promotion he got to a higher scale as per the

earlier scheme in order to get promotion under NEPP, as a special case the

NEPP promotion be given to the same higher scale he got earlier.

As perr parra 6..4 off tthe NEPP,, iiff an offffiiciiall who had allrready avaiilled up grradattiion underr

OTBP//BCR//Grrade--IIV//ACP,, afftterr 01..10..2000 and befforre nottiiffiicattiion off NEPP,, wiishes tto optt

fforr ffiirrstt up grradattiion underr NEPP,, tthen he//she has tto fforrego tthe up grradattiion allrready avaiilled

underr OTBP//BCR//Grrade IIV//ACP.. As perr tthiis prroviisiion iiff a Srr..TOA who has allrready avaiilled

OTBP afftterr 01..10..2004 wiishes tto optt fforr NEPP,, tthen he//she has tto fforrego tthe 7100--10100

scalle and wiillll be pllaced iin tthe 5700--8100 scalle.. Subsequenttlly,, he//she wiillll be prromotted tto

6550--9325 scalle.. Ullttiimattelly,, iin tthiis way tthe offffiiciiall iis acttualllly ffaciing demottiion ffrrom 7100--

10100 scalle tto 6550--9325 scalle.. Thiis iis a rrarre case arriisiing outt off tthe above narrrratted

siittuattiion.. You wiillll agrree tthatt such a demottiion orr rreverrsiion tto a llowerr scalle shoulld nott happen

wiitthoutt a dully giiven puniishmentt orrderr.. Hence iitt iis rrequestted tthatt iin tthiis case tthe 7100--10100

scalle off tthe Srr..TOA shoulld be prrottectted,, even iiff he//she optts fforr NEPP..

(13) Extra Increment granted in lieu of Grade-4 promotion after reaching the

maximum of the pay scale

Varriious CCA offffiices have soughtt cllarriiffiicattiions ffrrom DoT askiing whettherr tthe exttrra iincrrementt

tto be grrantted iin lliieu off Grrade--4 prromottiion iis admiissiiblle fforr tthe offffiiciialls who rreached

maxiimum off tthe pay scalle//allrready drrawn sttagnattiion iincrrementt afftterr rreachiing tthe maxiimum

off tthe pay scalle and allso whettherr afftterr tthiis grrantt off exttrra iincrrementt afftterr rreachiing maxiimum

off tthe pay scalle,, ffurrttherr annuall iincrrementt iis admiissiiblle.. IItt iis underrsttood tthatt tthe DoT rrefferrrred

tthiis matttterr tto BSNL fforr iitts viiew,, siince tthe grrantt off exttrra iincrrementt iis a scheme off BSNL..

IIn tthiis connecttiion iitt iis submiitttted tthatt tthiis exttrra iincrrementt beneffiitt iis allllowed tto tthose offffiiciialls

who do nott gett Grrade--IIV prromottiion,, keepiing iin viiew ttheiirr llong yearrs off good serrviice,, afftterr

jjudgmentt off tthe ffiittness off tthe offffiiciiall by a scrreeniing commiittttee and allso tthe cllaiim iis nott

allllowed on any ottherr grround exceptt keepiing iin viiew off tthe llong yearrs off good serrviice off tthe


Siince iitt iis grrantted as a speciiall case keepiing iin viiew tthe llong yearrs off good serrviice rrenderred

by tthe offffiiciiall and afftterr jjudgmentt off ffiittness by scrreeniing commiittttee,, and siince iitt iis nott any

annuall iincrrementt tto be sttopped afftterr rreachiing tthe maxiimum off tthe pay scalle and ttherreafftterr

tto be grrantted biienniialllly,, iitt has tto be grrantted even afftterr rreachiing maxiimum off tthe pay scalle//

afftterr gettttiing tthe sttagnattiion iincrrementt and siince iitt has tto be grrantted wiitthoutt any lliink tto

sttagnattiion,, tthe sttagnattiion iincrrementt has tto be giiven as perr prrocedurre tto such offffiiciialls even iiff

tthey gett tthiis exttrra iincrrementt afftterr rreachiing tthe maxiimum off tthe pay scalle.. Any ottherr viiew wiillll

be conttrradiicttiing tthe muttualllly agrreed prriinciiplle off grranttiing tthiis iincrrementt iin viiew off tthe llong

yearrs off good serrviice rrenderred by tthe offffiiciialls concerrned..

Therrefforre iitt iis necessarry tto upholld tthiis muttualllly agrreed and iimpllementted prriinciiplle and save

tthiis exttrra iincrrementt grrantted tto allll tthe concerrned offffiiciialls.. The BSNL managementt iis

rrequestted tto upholld tthiis iincrrementt grrantted afftterr rreachiing maxiimum off tthe pay scalle and tto

send a posiittiive viiew tto DoT fforr iitts conttiinuattiion..

******** M-094262 54999

Tuesday, June 28, 2011

Telecom minister Kapil Sibal to follow carrot-and-stick policy to turn around BSNL-inf. by Ashok Hindocha

Telecom minister Kapil Sibal to follow carrot-and-stick policy to turn around BSNL M-094262 54999
NEW DELHI: Determined to turn around loss-making PSU BSNL, telecom minister Kapil Sibal says he will adopt a 'carrot-and-stick' policy with an aim of getting desirable results within six months.

"The point is we must have targets for circles. If you don't you will be transferred out and those who will do well will be rewarded, may be they should be given a posting of their choice," Sibal said in an interview.

BSNL, once the country's flagship telecom company, posted a net loss of Rs 1,823 crore on revenue of Rs 32,046 crore in 2009-2010 and is also likely to post losses for the last financial year ended March 2011. The company had a net profit of over Rs 10,000 crore in 2005-06.

In terms of mobile subscribers, BSNL has been relegated to the fifth position from second just a few years ago as it has failed to match the competition from private players like Bharti, Vodafone, Idea and Tatas.

"The kind of assets BSNL has nobody else can have in this country. We need to use those assets for profit for public service ultimately. If you run at a loss you get subsidies and then all that money goes down the drain," Sibal said.

Department of Telecom (DoT) has instructed all 24 territorial circles to realise 25 per cent growth in their revenues on year-on-year basis, failing which they will be denied their monthly funds allocation.

BSNL's chief general managers in all 24 territorial circles have been categorically asked to mop up monthly revenues from the broadband, Wimax, mobile, value-added services and leased circuits businesses.

"...I am committed to turn around the performance of BSNL within six months and is closely monitoring the operations of the organisation," he added.

Under the revenue maximisation strategy, BSNL's circles have been divided into three-revenue wise categories, including those with less than Rs 10 billion revenue, those with Rs 10 billion-Rs 20 billion revenue and circles with revenues in excess of Rs 20 billion.

Earlier, a government body Board for Reconstruction of Public Sector Enterprises (BRPSE) had recommended that BSNL should merge its counterpart MTNL, a move that will help turn around the loss-making telecom giants.

BSNL had informed the panel that it expects to turn profitable in the year through March, 2013, but projects a net loss for the just-ended fiscal year and the ongoing year that began on April 1. Get a Quote M-094262 54999

Monday, June 27, 2011

Narendra Modi In Aap Ki Adalat M-09426254999

Narendra Modi's speech during Shala Praveshotsav in Sardarpura village M-09426254999

ShowBiz Minute: BET, Box Office, Jackson M-09426254999

Local hacks password, causes big loss to BSNL-inf. by ashok hindocha M-09426254999

Local hacks password, causes big loss to BSNL M-094262 54999
TNN Jun 23, 2011, 11.39am ISTTags:Bharat Sanchar Nigam Limited

LUDHIANA: A computer professional from Model Gram East allegedly used his skill to fleece Bharat Sanchar Nigam Limited (BSNL) of lakhs of rupees by hacking the password of a broadband user in Tamil Nadu. Assistant general manager (legal) Rakesh Kumar Aggarwal lodged a complaint against the absconding accused in division no 5 police station on Wednesday.

According to reports, Amanpreet Singh had got a BSNL broadband connection in 2008 and after sometime started downloading material from websites of users in Coimbatore, Tamil Nadu.

''The alleged accused had misused the service of a broadband customer based in Coimbatore by hacking their user name and password,'' said general manager of BSNL (Ludhiana) C S Bhanot.

BSNL Mobile Recharge

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To Find Jobs in BSNL Submit Your Resume Free. Now! MonsterIndia.comBhanot said the victim had received huge bills following which he lodged a complaint at BSNL's Coimbatore branch.

''The branch had started investigating and found that the domain name and number of the broadband service's user belonged to Ludhiana. He immediately contacted us and we also started an inquiry into the matter. Our investigation led us to Amanpreet,'' Bhanot said.

Informing that the accused is a computer professional, Bhanot added it seems like the accused used to download songs and games for commercial use.

The Coimbatore vigilance had also contacted Ludhiana police and cops have started investigations.

Initially they got in touch with the family and asked them to pay up whatever amount Amanpreet had fleeced from BSNL. ''The family members asked for forgiveness but were not willing to pay the money,'' Bhanot said.

Division no 5 police station house officer Naveen Kumar confirmed that they have started investigating the case. ''The accused is absconding but we will nab him soon,'' he said.

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Payment Options: State Bank of India - ICICI Bank - HDFC Bank - Axis Bank - Citi Bank - IDBI Bank - Bank of India - Union Bank - Bank of Baroda - Federal Bank - Corporation Bank - Oriental Bank of Commerce - Karnataka Bank - Bank of Rajasthan - Allahabad Bank - Bank of Bahrain and Kuwait - Deutsche Bank - Dhanlaxmi Bank - Indian Overseas Bank - Kotak Bank - South Indian Bank - Standard Chartered Bank - Vijaya Bank - Yes Bank - Jammu

income Tax New Rulling-inf. by Ashok Hindocha M-094262 01999 M-094262 01999
No.402/92/2006-MC (14 of 2011)

Government of India / Ministry of Finance

Department of Revenue

Central Board of Direct Taxes


New Delhi, dated the 23rd June, 2011


The Central Board of Direct Taxes has notified the scheme exempting salaried

taxpayers with total income up to Rs.5 lakh from filing income tax return for assessment year

2011-12, which will be due on July 31, 2011.

Individuals having total income up to Rs.5,00,000 for FY 2010-11, after allowable

deductions, consisting of salary from a single employer and interest income from deposits in

a saving bank account up to Rs.10,000 are not required to file their income tax return. Such

individuals must report their Permanent Account Number (PAN) and the entire income from

bank interest to their employer, pay the entire tax by way of deduction of tax at source, and

obtain a certificate of tax deduction in Form No.16.

Persons receiving salary from more than one employer, having income from sources

other than salary and interest income from a savings bank account, or having refund claims

shall not be covered under the scheme.

The scheme shall also not be applicable in cases wherein notices are issued for filing

the income tax return under section 142(1) or section 148 or section 153A or section 153C of

the Income Tax Act 1961.


Turning around? BSNL seeks Rs 4,000-cr subsidy-inf. by Ashok Hindocha M-094262 54999

Turning around? BSNL seeks Rs 4,000-cr subsidy .M-094262 01999
Cash-strapped State-owned telecom company Bharat Sanchar Nigam Limited (BSNL) would turn into a profit making enterprise in the next six months. Union human resource minister Kabil Sibal, who also holds the charge of telecom ministry, said this while talking to the Hindustan Times at Ranchi recently .

"I am aware about the kind of liquidity crunch the BSNL is facing particularly after procuring additional spectrum for newer services. Various strategies are being worked out for rejuvenation of the ailing telecom company," said Sibal.

Citing a couple of measures to arrange additional resources, the minister said the BSNL would be offered the liberty to lease out its space on mobile towers to other operators for financial gains. "I came to know that space on a large number of mobile towers is not being utilized properly," said the minister.

"Besides, the BSNL is set to play a major role in a countrywide project to link all villages with optical fibre cables (OFC). Laying the OFC throughout the country is a huge task, which is to be achieved within a couple of years," he said.

Integration of all villages across the country with OFC is a part of the major project mooted by the Centre to develop the national knowledge network, which intends to serve as an alternative to the huge shortage of academic institutions in the country.

"We are into a phase where we should strive for tapping the potential of information technology (IT) revolution," said Sibal.

Unlike the previous arrangement to keep watch on operational nitty-gritty of the public sector undertaking, the minister has also started monitoring of the financial health of each circle of the BSNL.

"I am reviewing the performance of BSNL circles closely. Non-performing officials have been cautioned to mend their ways, or be ready to face the music," he said.

However, a section of the BSNL officials is skeptic whether the initiatives taken by the union minister would help the telecom company overcome the financial strains within the stipulated timeframe.

"The company has suffered Rs 1800 cr loss during the fiscal 2009-10. The loss is expected to go up to Rs 5000 crore during the last fiscal ending March 2011. In this situation, a turn around seems impossible," said a senior officer of the Indian Telecom Service posted with Jharkhand BSNL. M-094262 01999

National Council News by Ashok Hindocha M-094262 01999 M-094262 01999

A briief note on the diiscussiions helld iin the 25th Natiionall

Counciill Meetiing,, helld on 24..06..2011

The 25th Nattiionall Counciill Meettiing was helld on 24..06..2011.. The meettiing was prresiided overr by

Shrrii A..K.. Garrg,, Diirr ((HR)),, who iis allso tthe Chaiirrman off tthe Nattiionall Counciill.. Shrrii R..K.. Upadhyay,,

CMD BSNL,, brriiefflly attttended tthe meettiing and wellcomed allll tthe Sttaffff Siide memberrs wiitth

bouquetts.. Afftterr custtomarry speeches by tthe Chaiirrman as wellll as tthe ED ((Fiin..)),, Com.. V..A..N..

Namboodiirrii,, lleaderr off tthe Sttaffff Siide made tthe iiniittiiall rremarrks.. IIn hiis speech tthe lleaderr Sttaffff Siide

sttrronglly opposed tthe prroposall tto iinttrroduce VRS iin BSNL as wellll as tthe merrgerr off IITII wiitth

BSNL.. Regarrdiing MTNL merrgerr wiitth BSNL,, he saiid iitt can be done subjjectt tto cerrttaiin condiittiions..

He sttrronglly demanded settttllementt off tthe bonus iissue and merrgerr off 78..2 % IIDA.. He allso

demanded tthatt tthe worrk off llayiing Nattiionall Opttiic Fiiberr Nettworrk and allso prroviidiing iintterrnett

connecttiions tto Postt Offffiices shoulld be giiven tto BSNL.. The Sttaffff Siide lleaderr sttrronglly demanded

tthatt tthe managementt shoulld settttlle tthe iissues off Conttrractt Worrkerrs whiich arre allrready rraiised wiitth

tthe managementt..

Com.. P.. Abhiimanyu,, Secrrettarry,, Sttaffff Siide demanded tthatt tthe modiiffiicattiions soughtt by tthe

uniion,, tto tthe Non--Executtiive Prromottiion Polliicy shoulld be settttlled wiitthoutt ffurrttherr dellay.. He allso

demanded tthatt tthe commiittttee appoiintted tto ffiinalliise new desiignattiions tto tthe Non--Executtiive

emplloyees shoulld meett iimmediiattelly and compllette iitt’’s busiiness.. The ffollllowiing agenda iittems

werre diiscussed iin tthe meettiing..

1.. Anomally due to accruall of iincrement to jjuniior earlliier than the seniior after

fiixatiion of pay iin the reviised pay scalle on iimpllementatiion of Non-Executiives

wage reviisiion w..e..f 1-1-2007-seniior’’s iincrement date be pre-poned to that of

the jjuniior

The Sttaffff Siide poiintted outt tthatt tthe acttiion off tthe managementt fforr stteppiing up off pay off tthe

seniiorr att parr wiitth jjuniiorr has nott sollved tthe prrobllem ffulllly.. IItt was demanded tthatt tthe datte off

iincrrementt off tthe seniiorr shoulld be sttepped up att parr wiitth tthe datte off iincrrementt off tthe

jjuniiorr.. The demand off tthe Sttaffff Siide was nott acceptted.. Afftterr much diiscussiion tthe

Chaiirrman gave tthe diirrecttiion tthatt tthe SR Secttiion shoulld ffiind outt how tthe prrobllem was

handlled iin ottherr PSUs..

2.. Presiidentiiall Orders iin case of the offiiciialls whose traiiniing started iin DoT and

appoiintment giiven iin BSNL

The Sttaffff Siide sttrronglly arrgued tthatt tthe offffiiciialls who werre rrecrruiitted by DoT and whose

ttrraiiniing sttarrtted durriing tthe perriiod off tthe DoT,, butt posttiing was made by tthe BSNL afftterr

01..10..2000 shoulld allso be ttrreatted as DoT rrecrruiittees.. Afftterr much diiscussiion tthe Chaiirrman

agrreed tto rrefferr tthiis case tto tthe DoT fforr ttakiing apprroprriiatte deciisiion..

3.. Reviisiion of Famiilly Pllanniing iincrement

The memberrs off tthe Sttaffff Siide demanded tthatt tthe quanttum off ffamiilly pllanniing iincenttiive

shoulld be rreviised,, siince tthe wage rreviisiion has allrready ttaken pllace and new pay scalles

arre allrready iimpllementted.. Afftterr much diiscussiion tthe Chaiirrman rrulled tthatt tthe demand off

tthe Sttaffff Siide woulld be consiiderred when tthe ffiinanciiall posiittiion off tthe company iimprroves..

4.. Settllement of Pay Anomalliies//Aberratiions that have ariisen at the tiime of

conversiion from CDA to IIDA pay scalles

The Sttaffff Siide brroughtt tto tthe nottiice off tthe Offffiiciiall Siide tthatt rrecommendattiions off tthe

anomalliies commiittttee was onlly parrttiialllly iimpllementted tthrrough tthe BSNL orrderr datted

30..08..2010.. IItt was sttrronglly demanded tthatt tthe ottherr rrecommendattiions off tthe commiittttee


shoulld be iimpllementted ffulllly.. The Offffiiciiall Siide sttatted tthatt tthe llanguage off tthe agrreementt

was nott prroperrlly underrsttood by tthe managementt whiich has rresulltted iin tthe deniiall off tthe

settttllementt off tthe anomalliies tto a secttiion off tthe aggrriieved offffiiciialls.. The Chaiirrman sttatted

tthatt tthe demand off tthe Sttaffff Siide was acceptted and necessarry iinsttrructtiions woulld be


5.. Grantiing of optiion for retaiiniing CDA pay scalle tiillll promotiion//retiirement,, to

offiiciialls absorbed iin BSNL

The Offffiiciiall Siide sttatted tthatt tthe iissue woulld be examiined..

6.. Reiimbursement of expendiiture iincurred for out-patiient treatment

wiith//wiithout voucher,, based on reviised pay+DA

The Sttaffff Siide demanded iimmediiatte iissuiing off tthe orrderr by BSNL fforr enhanciing tthe lliimiitt

based on tthe rreviised pay scalles.. Chaiirrman acceptted tthiis and assurred orrderrs wiillll be


7.. Giive offiiciiatiing promotiions to JTO(T) to the non executiives who are elliigiiblle

as per JTO RR 2001 under JTO under 35% & 15% LIICE quota..

The Sttaffff Siide demanded tthatt as perr tthe JTO Recrruiittmentt Rulles 2001 offffiiciiattiing shoulld

be giiven tto tthe elliigiiblle offffiiciialls ttiillll tthe JTO LIICE iis conductted.. Howeverr tthiis demand was

nott acceptted by tthe Chaiirrman..

8.. Amend the JTO RR 2001 to iincllude M..Sc (Ellectroniics) iin addiitiion to B..Sc

(Physiics & Maths) and 3 years Diiplloma iin Engiineeriing..

Afftterr diiscussiion tthe Chaiirrman sttatted tthatt tthe demand woulld be apprroprriiattelly examiined..

9.. Amendment iin the recruiitment rulle of JTO (E) and JTO (C) and JAO..

The demand off tthe Sttaffff Siide tthatt tthe RRs off JTO ((E)),, JTO ((C)) and JAO shoulld be

amended so tthatt tthe qualliiffyiing serrviice iis rreduced ffrrom 10 yearrs tto 7 yearrs was acceptted

by tthe Chaiirrman..

10.. Enhancement of concessiion to BSNL//DoT emplloyees and pensiioners for

Broad Band iin case of Rs 750//- scheme

Afftterr hearriing tthe demand off tthe Sttaffff Siide,, tthe Chaiirrman sttatted tthatt tthe scheme iis

allrready iimpllementted fforr tthe serrviing emplloyees and iitt woulld be iimpllementted iin case off

pensiionerrs allso..

11.. IImpllementatiion of the Judgment dated 27..8..2010 of CAT Priinciipall Bench,, iin

OA No: 282//10 by grantiing of JTO Pay Scalle and Fiixatiion under FR 22 (1) (a)

(ii) for Offiiciiatiing JTOs..

12.. Probllem ariisiing iin iimpllementatiion of the Orders of Government of IIndiia on

Offiiciiatiing Pay under FR 35,, iin case of Offiiciiatiing JAO//Offiiciiatiing JTO


30.. Appoiintment of TTAs offiiciiatiing as JTOs,, as regullar JTO

The above tthrree iittems werre cllubbed ttogettherr and diiscussed.. Afftterr a llengtthy diiscussiion

tthe Chaiirrman acceptted tthe genuiiness off tthe demand and assurred tthatt tthe demand woulld

be sympatthettiicalllly examiined..


13.. LDCE for TTA cadre under 40% Quota – Confiirmatiion of sellectiion of

successfull candiidates decllared as proviisiionalllly sellected..

The LDCE fforr TTA underr 40% quotta was conductted iin Chennaii ciirrclle and tthe rresulltts iin

rrespectt off cerrttaiin offffiiciialls werre wiitthhelld.. The rresulltts arre nott beiing decllarred on tthe pllea

tthatt tthese offffiiciialls do nott possess 10 + 2 qualliiffiicattiion,, butt have acquiirred degrree tthrrough

open uniiverrsiittiies,, afftterr compllettiion off 10 sttandarrd.. Afftterr diiscussiion tthe Chaiirrman sttatted

tthatt Chennaii ciirrclle woulld be asked tto rreexamiine tthe case..

14.. Arrangiing Dr B..R.. Ambedkar’’s photo iin Conference Hallll,, 9tth Flloor,, BSNL

Corporate Offiice

The demand off tthe Sttaffff Siide fforr prroviidiing Drr.. B..R.. Ambedkarr’’s photto iin tthe Confferrence

hallll ((9th fflloorr)) off tthe Corrporratte Offffiice was acceptted.. The Chaiirrman announced tthatt tthe

phottos off botth Mahattma Gandhii and Drr.. B..R.. Ambedkarr woulld be diispllayed iin tthe

Confferrence hallll..

15.. Proviisiion of GSM mobiille hand set to allll non-executiives

The demand off tthe Sttaffff Siide tto prroviide GSM mobiille hand setts tto allll tthe Non--Executtiive

emplloyees was nott acceptted iin viiew off tthe sttrraiined ffiinanciiall posiittiion off tthe company..

Howeverr,, tthe Chaiirrman announced tthatt Siim Carrd wiitth cerrttaiin hourrs off ‘‘ffrree ttallk ttiime’’

woulld be prroviided tto allll tthe offffiiciialls who have allrready been prroviided wiitth WLL hand sett..

16.. Vacant Staff quarters be proviided for recogniized uniion

Afftterr diiscussiion tthe Chaiirrman announced tthatt vacantt sttaffff quarrtterrs woulld be allllotttted ‘‘on a

ffaiirr rrentt basiis’’ tto rrecogniized and rregiistterred uniions as wellll as fforr tthe rrettiirrees..

17.. IImpllement wage reviisiion for TSM // Casuall Labor iin BSNL on the basiis of the

miiniimum IIDA pay of Group D

The Sttaffff Siide sttrronglly demanded tthatt tthe wages off TSM // Casuall Labourrerrs shoulld be

rreviised based on tthe IIDA pay scalles.. Howeverr iitt was nott acceptted by tthe Offffiiciiall Siide..

Based on tthe rrequestt off tthe Sttaffff Siide tthe iittem iis nott ttrreatted as ‘‘cllosed’’..

18.. Speciiall Allllowances to the staff workiing iin Jammu & Kashmiir Ciirclle

((a)) The demand off tthe Sttaffff Siide,, tto exttend tthe paymentt off Srriinagarr Valllley allllowance iis

acceptted by tthe Offffiiciiall Siide,, fforr whiich orrderr wiillll be iissued shorrttlly..

((b)) The demand off tthe Sttaffff Siide,, tto exttend tthe speciiall concessiions // ffaciilliittiies tto tthe sttaffff

worrkiing iin Srriinagarr Valllley,, as perr DoP&T orrderr No..18016//3//2010--Estttt((L)) datted

15..03..2010,, was acceptted by tthe Offffiiciiall Siide and orrderr wiillll be iissued shorrttlly..

((c)) The demand off tthe Sttaffff Siide,, fforr paymentt off Speciiall Dutty Allllowance fforr allll tthe Non--

Executtiives worrkiing iin Jammu & Kashmiirr was nott acceptted..

19.. Speciiall proviisiions for settlliing the anomally//aberratiion iin the wage reviisiion of

non-executiives appoiinted on or after 1-1-2007

The demand off tthe Sttaffff Siide tto grrantt 30% pay ffiixattiion iin rrespectt off allll tthe emplloyees

who arre appoiintted afftterr 01..01..2007,, wiitth viiew tto rresollve tthe anomally,, was nott acceptted

by tthe Offffiiciiall Siide..

20.. Reviiew of Compassiionate appoiintments modalliitiies

The Sttaffff Siide sttrronglly demanded tthatt tthe modalliittiies off tthe Compassiionatte grround

appoiinttmentts shoulld be suiittablly rreviiewed,, was parrttlly acceptted..


((a)) The Chaiirrman acceptted tthatt tthe wage rreviisiion w..e..ff.. 01..01..2007 woulld be ttaken iin tto

accountt fforr apprroprriiattelly rreckoniing tthe grrattuiitty and pensiionerry beneffiitts off tthe

deceased emplloyee..

((b)) IItt was allso acceptted tthatt iinsttead off consiiderriing tthe spouse off tthe deceased emplloyee

allone fforr appoiinttmentt,, tthe son // daughtterr wiillll allso be consiiderred..

((c)) Afftterr much diiscussiion,, tthe Chaiirrman agrreed tto consttiittutte a Joiintt Commiittttee tto

examiine tthe demand off tthe Sttaffff Siide fforr cash paymentt fforr tthose who do nott gett tthe

jjob.. Howeverr tthe managementt exprressed tthe viiew tthatt eiittherr tthe systtem off

compassiionatte appoiinttmentts subjjectt tto 5% quotta as avaiillablle att prresentt has tto be

ttherre orr iitt has tto be rrepllaced wiitth cash paymentt,, by compllettelly sttoppiing tthe CG


21.. NEPP iin case of Tellecom Mechaniics who were granted hiigher pay scalle

(OTBP//BCR) pursuant to the orders of variious Courts

IIn Andhrra Prradesh ciirrclle,, as perr tthe jjudgementt off tthe Hiigh Courrtt // CAT,, some Tellecom

Mechaniics werre grrantted OTBP//BCR,, ttakiing iintto accountt ttheiirr RM and Tellegrraph

Messengerr Serrviice.. Howeverr,, tthese offffiiciialls werre nott grrantted prromottiions underr NEPP on

tthe pllea tthatt ttheiirr case iis sttiillll pendiing iin tthe Suprreme Courrtt.. The Sttaffff Siide demanded

tthatt tthese offffiiciialls shoulld be consiiderred fforr grranttiing off prromottiions underr NEPP.. Howeverr

tthe Offffiiciiall Siide diid nott acceptted tthiis siince tthe matttterr iis subjjudiice..

22.. Non-avaiillabiilliity of materiialls requiired for extendiing better serviice to the


23.. Non-avaiillabiilliity of tellephone iinstruments

24.. Layiing and maiintenance of cablle

The iittems numberr 22,, 23 and 24 arre cllubbed ttogettherr and diiscussed.. The Sttaffff Siide

biitttterrlly compllaiined tthatt prroviidiing off good qualliitty serrviice and ttiimelly rrecttiiffiicattiion off ffaulltts

arre verry much hamperred by tthe non--avaiillabiilliitty off matterriialls,, cablles and ttellephone

iinsttrrumentts.. The Chaiirrman assurred tthatt stteps arre allrready beiing ttaken fforr tthe supplly off

cablle modem and ttellephone iinsttrrumentts wiitthiin a perriiod off tthrree montths..

25.. Compassiionate appoiintments-iissue orders allllowiing creatiion of posts after


The demand off tthe Sttaffff Siide,, rrequesttiing tto iissue necessarry orrderr,, allllowiing crreattiion off

postts fforr compassiionatte appoiinttmentts,, beyond 31..03..2008 was rrejjectted..

26.. Grantiing a chance to the concerned offiiciialls for changiing theiir optiion

regardiing reviisiion of pay from 1-1-2007 or from date of promotiion after 1-1-


The Sttaffff Siide rrequestted tthatt tthe offffiiciialls shoulld be giiven one morre opttiion fforr rreviisiion off

pay w..e..ff.. 01..01..2007 orr ffrrom ttheiirr datte off prromottiion afftterr 01..01..2007.. Afftterr diiscussiion,, iitt

was acceptted by tthe Chaiirrman tthatt one montth ttiime woulld be giiven tto exerrciise opttiion,,

onlly iin tthe case off offffiiciialls who have gone on prromottiion..

27.. IIncrease the monthlly contriibutiion and assured sum under BSNL GSLIIS for


The Sttaffff Siide demanded tto iincrrease tthe BSNL GSLIIS montthlly conttrriibuttiion fforr Non--

Executtiives tto Rs.. 315//-- ffrrom tthe prresentt Rs..105//-- and tto iincrrease tthe assurred sum tto

Rs..3,,00,,000//-- iin case off norrmall deatth and tto Rs.. 6,,00,,000//-- iin case off deatth due tto


acciidentt,, was acceptted.. BSNL managementt woulld ttake necessarry stteps fforr tthiis wiitth tthe


28.. Chiilld Care Leave for women emplloyees iin BSNL on par wiith the women

emplloyees iin Centrall Government Departments

The Sttaffff Siide sttrronglly arrgued tthatt tthe Chiilld Carre Leave,, whiich has allrready been

iimpllementted by Govtt.. off IIndiia,, iin rrespectt off Centtrrall Govtt.. Emplloyees,, shoulld allso be

iimpllementted iin BSNL.. Howeverr tthiis was nott acceptted.. The Chaiirrman iinfforrmed tthatt tthe

managementt commiittttee has allrready ttaken deciisiion tto iimpllementt Chiilld Carre Leave iin

BSNL,, wiitthoutt pay.. The Sttaffff Siide rrecorrded iitt’’s sttrrong prrottestt fforr tthe deniiall off Chiilld Carre

Leave wiitth pay tto tthe BSNL Emplloyees.. The Chaiirrman ttolld he woulld convey tthe sttrrong

viiew off tthe Sttaffff Siide tto tthe BSNL Boarrd..

29.. Cost Accountant,, Tellecom Factory decllared Executiive on absorptiion iin

BSNL but Executiive Pay scalle deniied and the pay scalle 7830-230-12430

giiven was wiithdrawn and asked to be reverted to 7800-225-11175 scalle after

retiirement-Urgent settllement of the executiive pay scalle iissue for thiis cadre


The Chaiirrman sttatted tthatt tthiis case woulld be sympatthettiicalllly consiiderred..

30.. IImmediiate iintroductiion of NE-12 pay scalle wiith effect from 1-1-2007

The Sttaffff Siide poiintted outt tthatt iin tthe diiscussiion helld by tthe uniion wiitth tthe offffiiciiall siide

rreprresenttattiives on NE--12 pay scalle,, a consensus was rreached tto tthatt tthe miiniimum and

maxiimum off tthe NE--12 scalle has tto be Rs..16,,390 and Rs..33,,830//--.. Thiis was acceptted by

tthe offffiiciiall siide.. Howeverr,, tthe offffiiciiall siide saiid tthe datte off effffectt wiillll be prrospecttiive.. The

Sttaffff siide iinsiistted tthatt prrospecttiive means 1..1..2007 siince rreviised pay scalle fforr tthe 9200--

13200 scalle prroposed iin tthe prromottiion polliicy agrreementt has tto come iintto effffectt ffrrom

1..1..2007,, as perr tthe DPE guiidelliines.. The offffiiciiall Siide agrreed tto consiiderr tthe datte off effffectt

based on tthe DPE//DoT lletttterr fforr prrospecttiive iimpllementtattiion and tthe viiew submiitttted by

tthe Sttaffff Siide rregarrdiing tthe meaniing off tthe tterrm ““Prrospecttiive”” iin tthe giiven conttextt..

32.. Pay scalles to be evollved under NEPP scheme for Non-Executiives iin E1A


The Sttaffff Siide demanded tthatt hiigherr pay scalles shoulld be evollved fforr tthe prromottiion off

offffiiciialls bellongiing tto cadrres lliike Sttenogrrapherr,, Liibrrarriian ettc.. who arre allrready giiven E1A

pay scalle underr ACP scheme.. IItt was allso demanded tthatt tthey shoulld be giiven executtiive

sttattus.. The Chaiirrman agrreed tto examiine tthese demands..

********** M-094262 01999

Friday, June 24, 2011

Latest News by Ashok Hindocha M-09426201999 Vedio News inf. M-094262-54999


shree amarnathji yatra 2011: shree amarnathji yatra 2011

shree amarnathji yatra 2011: shree amarnathji yatra 2011 m-094262 54999

BSNL Revised Terrif for ISD calls-inf. by ashok hindocha M-094262 54999

No. 3-4/2009-R&C [CFA] Dated: 21-06-2011

Circular No. 08/11-12

Subject: Revision of ISD tariff to popular destinations through UITC / Smart ITC

of denominations of Rs.300/- and above on promotional basis for a

period of 90 days –reg.

The competent Authority has decided to revise the existing ISD call rates for

certain countries available in Universal India Telephone card (UITC)/ Smart India

Telephone card (Smart ITC) of denominations of Rs.300/- and above on promotional

basis for a period of 90 days w.e.f 23-06-2011 as under :

Group Country Existing Tariff Revised Tariff

A USA, Canada, Singapore, Hong Kong,

Thailand, Malaysia

UK (Fixed) , Australia(Fixed)

Germany(Fixed) , Bangladesh







(~Rs 1.8/min)

B Pakistan, France, Sweden





(~ Rs 6/min)

2. ISD rates for the countries other than countries mentioned under Group ’ A’ & ‘B’

above shall remain same as per existing tariff.

3. ISD rates of UITC/Smart ITC of denominations less than Rs. 300/- shall remain

same as per existing tariff.

4. The above promotional tariff scheme shall be applicable for 90 days w.e.f.23.06.2011.

5. All other terms and conditions as per existing orders shall remain unchanged.

6. This may be brought to the notice of all concerned and necessary steps taken for its

proper implementation.

7. Wide publicity of above said promotional scheme may kindly be given to increase the


8. This circular is issued based on the approval of the competent authority in NWO-II

CFA(IN) branch file no.26-03/2011-NWO-II/CFA(IN). For any clarification/

correspondence, in this regard , matter may be taken up with (NWO-II-CFA )

Branch, BSNL, Co, Janpath, New Delhi( Tel No.011-23714148, Fax.No.011-


Rates & Costing Section - CFA

Corporate Office,

Eastern Court

Janpath, New Delhi

Tel: 011-23734320 Fax: 011-23734322

-: 2 :-

9. The impact of the tariff may be analyzed and feedback submitted on monthly basis to

(NWO-CFA) branch of BSNL ,CO by email at

(S.K.Bhat )



All CGMs-Telecom Circles /Metro Telephone Districts.

Copy for information to: -


2. Directors (CFA / CM / ENT / HR / FIN) on BSNLs Board.

3. Executive Director (Finance)/CA/NB, BSNL.

4. All PGMs / GMs - CFA, CO BSNL.

5. GM (Marketing), CO BSNL, for adequate publicity and marketing of the service.

6. GM (IT), CO BSNL – for placement on BSNL Website.

7. Sr.GM (NWO)-CFA, CO BSNL w.r.t case mark: File No. 26-03/2011/ NWO-CFA / IN carrying

the approval of the Competent Authority in the matter.

8. CGM (ITPC), Pune, for necessary changes in CDR/billing system.

9. CGM (BBNW), New Delhi

10. GM (BBNW), Bangalore NOC, BBNW.

11. Director General P&T audit, Delhi-110 054.

12. Guard File.


AGM(T&C)-CFA M-094262-54999

આવો જાણીએ ગુજરાતનો ઈતિહાસ

આવો જાણીએ ગુજરાતનો ઈતિહાસ M-094262 54999

દેશ સમક્ષ રાજ પરિવારનો ઈતિહાસ મુકવો જોઈએ-મોદી

દેશ સમક્ષ રાજ પરિવારનો ઈતિહાસ મુકવો જોઈએ-મોદી M-094262 54999

BSNL Latest News by Ashok Hindocha M--094262-54999

DoT misses most 2010-11 targets; sets fresh ones for this year? M-094262 54999
Spectrum allocation policy to be approved by Nov 30

Even though the Department of Telecom has missed most of its targets for 2010-11, it has set fresh timelines for the current year including clearing all pending applications for spectrum within six months after the allocation policy is finalised.

According to the Results Framework Document (RFD) prepared by DoT, spectrum allocation policy will be approved by November 30, after which all pending applications will be taken up. ]

There are more than 200 pending applications from mobile operators for additional spectrum.

Other issues

Other issues on DoT's agenda include the New Telecom Policy, policy for introducing Mobile Virtual Network Operators (MVNO), comprehensive network security policy and guidelines for promoting local manufacturing. DoT has assigned weightage to each of its proposed activities and the new telecom policy carries the highest priority.

This comes even as the department has missed most of the targets set out last year. Except for conducting 3G auctions successfully and introduction of Mobile Number Portability, the DoT does not have much to show in its report card.

For example, the DoT had said that it will finalise the revised Mergers and Acquisition policy within two-and-half-months of receiving the TRAI recommendations.

Convergence policy

TRAI had sent its suggestions in February 2011, but the policy is yet to be finalised.

DoT had also committed to a convergence policy between IT, telecom and broadcasting which is also pending.

DoT has put the onus on TRAI for most of the delays on grounds that finalisation of the policies is dependant on getting TRAI's views.

DoT and TRAI have been going back and forth on a number of issues such as spectrum management, which has delayed decision making.

The RFD has been prepared by the Government for every major Ministries outlining the target and the expected time line for achieving the initiative.

The move is aimed at bringing more accountability in the functioning of the various Government departments. M-094262 54999

Thursday, June 23, 2011

BSNL Joint Action committee latest News by Ashok Hindocha M-09426254999



D--7,, Tellegrraph Pllace,, Golle Marrkett,, New Dellhii – 110 001..

JJAC / Meettiing 21..06..2011

Deciisiions off tthe JAC Meettiing helld on 21st June 2011

A meettiing off tthe Joiintt Acttiion Commiittttee off BSNL Associiattiions // Uniions off Executtiives and Non--

Executtiives was helld on 21st June 2011.. Com.. G..L..Jogii prresiided overr tthe meettiing.. Com..

V..A..N..Namboodiirrii,, Convenerr,, brriieffed tthe meettiing aboutt tthe devellopmentts afftterr tthe llastt meettiing

iinclludiing tthe meettiing wiitth tthe CMD BSNL.. Afftterr dettaiilled diiscussiions,, tthe ffollllowiing deciisiions werre


1.. Customer Delliight Month and devellopmentall programmes:

IItt was deciided earrlliierr tto gett tthe dettaiilled iinfforrmattiion ffrrom tthe Ciirrclles on tthe above iissue.. Butt verry

ffew ciirrclles have ffurrniished tthe same.. IItt was rreiitterratted tthatt befforre tthe nextt meettiing,, tthese shoulld

be obttaiined tto have a ffrruiittffull diiscussiion.. IIn tthe meanttiime,, tthe iissue off llack off mobiille equiipmentts,,

cablles,, modem ettc.. shoulld be diiscussed wiitth tthe concerrned offffiicerrs iin tthe Corrporratte Offffiice fforr

prrocurriing tthe same..

2.. Effectiive iimpllementatiion of Projects:

Prrojjectts lliike CDR,, ERP ettc.. arre eiittherr beiing dellayed orr nott effffecttiive as rrequiirred.. These prrojjectts

shoulld be gott iimpllementted effffecttiivelly..

3.. Postiing of Executiive Diirectors: For effecttiive superviisiion and iimpllementtattiion of

devellopmenttall acttiiviittiies,, tthe meettiing prroposed tthatt tthe Executtiive Diirrecttorrs now worrkiing iin tthe

Corrporratte Offffiice shoulld be allllotttted tto tthe Zones and postted ttherre..

4.. BRPSE Recommendatiions: The meettiing diiscussed aboutt tthe varriious rrecommendattiions //

deciisiions off tthe BSNL Boarrd on tthe rrecommendattiions off tthe BRPSE.. On each iissue,, tthe opiiniion

off tthe JAC iis ffurrniished bellow..

1)) ITI merger wiith BSNL – JAC opposes tthiis,, siince IITII iis a manuffactturriing company

whiille BSNL iis a serrviice prroviiderr.. Furrttherr merrgiing ttwo lloss makiing companiies make no


2)) BSNL-MTNL Merger – JAC ffeells tthatt merrgerr wiillll hellp synerrgy and pan –IIndiia

prresence.. Butt att tthe same ttiime,, tthe diifffferrence iin pay off tthe emplloyees and pensiion

schemes as allso tthatt MTNL iis diisiinvestted whiille BSNL iis nott diisiinvestted ettc.. shoulld be

comprrehensiivelly sollved befforre merrgerr ttakes pllace..

3) VRS – JAC conttiinues iitts sttrrong opposiittiion tto VRS..

4)) Support from DOT – Maxiimum supporrtt shoulld be giiven tto BSNL by goverrnmentt..

5)) Actiion Pllan to iimprove – Thiis iis verry much necessarry and shoulld be iimpllementted

effffecttiivelly wiitth tthe parrttiiciipattiion off tthe worrkerrs..

5.. Allternate Tellecom Polliicy:

IIn addiittiion tto tthe notte giiven tto tthe Communiicattiions Miiniistterr on tthe subjjectt,, addiittiionall poiintts

shoulld be submiitttted whiich werre diiscussed.. A speciiall meettiing tto diiscuss tthe same shoulld be

soughtt ffrrom tthe Miiniistterr..

6.. Next meetiing of the JAC wiillll be helld att 1500 hourrs on Wednesday,, 29th June 2011..


Convener,, JAC M-094262 54999

BSNL Latest News by Ashok Hindocha -VRS-in BSNL/MTNL?-inf. M-09426254999
Corporate Planning & Monitoring Cell'

609, Bharat Sanchar Bhavan, Janpath

New Delhi: 110001

rn rradu ko nefa)bsnl.coin.

BRPSE Matter


w& t tln?TTiqriTrrqidRg


iERn* '-nRs Tt ronrq)

s K BHARlt*A"fTl* nl
1g*LgrlM rTEn

No: 1-207/201O/CP&Mi


All BUs Head - Director( CM) / Director( CFA) / Director( Enterprise/) ED (NB)

Director'(HR/) liD (Finance/) IrD (CN)

Sr GM (Regulation)


Sub: F-ollowu p actiono n the recommendatiomn adeb y BRPSEi n its 86tnm eetingh eld on 21.12.2010

ina itr reviewb y DOT on the Action takenr eporti n the meetingh eld in SancharB havano n 25.05.2011


Ref: DOI' filc 10-1 612010-SIt JD ated3 1" May 2011

1. This is with referencet o the review meetingh eld under the chairmanshipo f Member(S)o n

25.05.2011o n the Action taken repofi submittedb y BSNL on the recommendationm ade by

BRPSFI to improve BSNI.'s physical and financial performance in its 86th meeting held on




Action takenr eporl submittedb y BSNL on the variousr ecommendationms adeb y BRPSEi s

placed at Annex I

3. DO1 vide letteru nderr eferencep laceda t Annexure II hass eekeda dditionali nputso n the Action


reports r-rbmittebdy DOT. The desiredi nputsa longw ith the units who has to providet he

samea rc indicatedb elow

3.1 RecommendationI (Para 2.18.1( i)): - To suggestth e ways throughw hich operationalle vel

synergy between BSNL and MTNL can be achieved, within the present regulatory and legal

liamen'ork" in consultation with MTNL

----Action by: DIR (Enterprise/) Sr GM (Regulation)

3.2 Recommendation No 2 (Para 2.18.1 (ii)): - BSNL may submit business plan as well as

strategyf br sustainableg rowth basedo n SWOT analysisin termso f financialf iguresi .e cost,

expenditurea ndr esultse xpected.

Commentso f CP&M Cell: The projectedr evenuee, xpenditurefr om 2011-12t o 2016-I 7 was

discusseda nd finalizedu ndert he chairmanshipo f CMD in the meetingh eld in the boardr oom

on 03.06.2011in the presenceo f DIR(CFA), DIR(HR), ED(F), ED(CA), Sr GMs/ GMs of

Businessp lanningu nit, BFC&I.

Page I of 2

Respectivep lanning units are now requiredt o provide inputs how the projectedr evenuesw ill

be achicved Action by All BU Heads

3.3 Recommendation No 3 (Para 2.18.1 (iiD) - BSNL may submit details about category wise

identifications of surplus staff as well as broad financial implications of suggested VRS

options. Fufther, steps envisaged to reduce cost of maintenance of infrastructure, results

expectedi n f-rnanciatle rms and the time taken to achieve intendedr esults may also be

indicated. ..Action By: DIR (HR)

3.4 RecommendationN o 4 (Para 2.18 (iv)):- Detailso f Strategica nd Non-Strategica ctivitiesa s

well as non-recoverable cost on strategic activities may be intimated after taking into

considerationth e views of of Administrator( USOF) as communicatedv ide letter No 30-

8/2006-tJSdFa ted2 4-5-1I.

Comments of CP&M Cell: The copy of the letter is placed at Annex III. In addition to

observationo f Administrator( USOF),B SNL for its CAPEX plans2 011-12h asp rojectedB E

of Rs 15 .277C rores.A ll BUs arer equestedto segregatea cho f the proposedp rojecta sp art of

Btr 2011-12in thef brm of strategi&c non-strategaicls o

--Action Bv All BU Heads

4. All concerneda re requestedt o provide point wise inputs on eacho f the abovea ctionablep oints on

top most priority and in any case positively by 1410612011.

Encl: As above


f'.t'' i'''l''*'l'o*t* *-: =- -"--:-- '- -""


Pr. General Manager (Corporate Planning & Monitoring)

Copy To:

[] CMD BSNL lbr inlbrmation please

[2] ED(CA) for infbrmationp lease

[2] All Sr GMs / GMs of Planning Units / Finance - Sr GM (BP-Ent) / Sr GM (BP-CM) / Sr GM (BPCF'A)


Wi-Max) / Sr GM (NWP-BB) / Sr GM 0'{WP-CFA) / Sr GM(Trg) / GM (Corporate


Page2 of2

CP&M Cell, BSNL Corporate


Office,6tfhl oor, BharatS anchar

Bhawan, Harish Chandra Mathur

Lane, Janpath, New Delhi-110001

rL l a, r , r . l l * . r , { r .

' lJrl I t I t t ^ I t (


No 1- 207I BRPSE/2100 -Cp&M

e{Ffiil €?rR

( rTnd {f{*Tr 6t Sqrra)


(A Govl of lndia Enierpnse,


S Follow up action on the Recommendationmsa de by the Board for Reconstructioonf Publics ector Enterprise(B RpsE) in its meetingh eld officialosf DOT with and BSNL on 21.i2.2010

Ref : 1.D IR( PSU-
L) et teNr o 10-16/201O-Is dua ted. t6thM av2 011

2. DtR( psu-r)L etterN o 10-16 r2010-suI d ated1 stM a;rr2011

The point wise action taken / action plannedb y BSNL on the various recommendatiomnsa deb y BRPSEi n its reviewm eetingh eldo n 21.12.2010 givenb elow. are

Recommendatio1n ( para2 .1g( i) :

'.'TheB oards tronglyr ecommends the merger of lTl Ltd. with 8SNL or its takeover

by the BSNL as a separates ubsidiary thereby ensuring strategicv ertical integrations.T his shoutd enable BSNL fo combine seruicep roviding with manufactureo f the productsa nd thuse mergea s a leadingg tobatp tuy"i ui,ts ome

of the Chinesec ompaniesh ave done in recentt imes. tTis-produ'cmt ix ioutdb e apprgpriatetyc hanged to enabte it to producem obite telephonesa ni other productsb y bringingi n the latestf oreign technologies/I./ 's accumulated/o ssess

mgt alsoh elp BSNLt o gain tax advantages.S imitiarlyt,h erei s no reasonfo r the

MTNLt o continuea s a separatee ntity.f his could atso'Aeb roughtu nder8 SNL as a subsidiary"

Action taken / Action planned:

lTl Merger:

The corporateo bjectivesa nd businesss trategieso f BSNL and lTl are quite

diverse. BSNL is 1 telecom operator while ltl is equipment manufacturing

companyT. he coreb usinesso f BSNLi s to provideh ighq ualityte lecoms ervices

and state-of-the-arti/n novativep roductsa crossd ifferenbt usinessa nd customer

segmentsb y sourcinga nd -leveragintgh e latestt echnologieOs.n the otherh and,

lTl is intoe quipmenmt anufacturinagn di s riddenw ithm anyw eaknessessu cha s

inadequatien - house.R&Dv,e ryh ighc ostb ase,s hortageo f relevanst kills,r ow

valuea dditione tc. BSNLd oesn ot havee xpertiseo r skillst o assistl Tl in any of

thesea reasT' hef astp aceo_f changesin telecommunicatitoenc hnologieasn dt he

competitioins furthere rodinglT l'sp rofitabiliatyt a rapidp ace.I n thJabsenceo f

any shared corporateo bjectiveso r businesss ynergiesv, erticali ntegrationo f BSNLi ntot elecorne quipmenmt anufacturinwgi lln otn 6 in its businessin ierests.

It willb e relevantto mentionth atB SNLh ass tartedin curr"inlogs sess ince2 009-10

and therefore the suggestion of BSNL gaining Tax advantage from the

accumulateldo sseso f lTl doesn ota rise.

BSNL'ss alarya nd wagec osti s moret han 50% staff expenditure of its revenues.T hus,t o curtail and revive BSNL, aRFse itserf has recommended implementatioonf VRS in BSNL.T hat beinj regarding in" .rr", the recommendation mergerw ith lrl will be contraryto thise i".orr"ndations and further

fiffi:L*: 3i:ffit$l,rttr.

asa ili nes taroi rl rr wirar rso" .or. parot r

MTNL Merger:

All the majort elecomp layerss ucha s BhartiR, eriance presencea nd are and rata havep an-lndia able to exploitt his to garner. urtor"rc in all the LSAst hus increasintgh eirm arkets hare.I n the .1J".oi Mumbai riffirise customersD, erhia nd is the hubf or majorityo f corporated ecisionLs nd in Delhia nd Mumbai.will henceh avingp resence tirinj in netterb usinessro i-ebNl. Duet o tneiestrictions in the licensincgo nditionsg,S NtLa nd MTNL. .n This noto peratein eacho thersa rea. operational

particularlfyro m .synergyi.s very rr.n Lqrit"i'i'l*""n BSNL and MTNL highm aroine nterpriseo usinessr.n Jryn"rgy between shalln oto nlyh elpt he PSUsp resent two psUs a unifiedv iewt oinis etites egmenbt uts hall alsoi mproveo veraisl erviced eriverya nds ervicea ssurance.

Followingtw o pointsn eed to be carefullya ddressed mergeor f MTNL beforea ny decisiono n the in BSNL is taken.

(i) salary: The salaryo f the employeeso f MTNL is retativelhy ighert hant hat of BSNL.o n merger,i t is anticipatedt,h at tne emptoyees also demandm atchingp ay of BSNLm ay with that or vriNf*hich wilt furtheri ncrease the salary& wage cosi or the combin"J. n1itya dverselya ffectrng viabilityo f the combinede ntity. the

(ii)PensionT: he pensiono f the emproyees of the MTNL is paid through MTNLi nternarl esourcesw hereasih e'pensiono f tt.l" is paid through employeeso f BSNL the consolidaterdr nd or-inJiao r the Government. mergert,h e emproyeeosf on MTNLm ay arsoo emanop ryr"nl oi'p"nrion throughth e Governmenwt hichr .y in.r.r..-in" financial Government. burdeno f the

Recommendatio2n (para2 .1g( ii)):

"The Board aavised-D /offi and BSNL to submit a cogentr evivar/ restructurinpgl an for B,fNt- withina periodo f foumoiln, the BRPSEi,n corpo,rating for the consideratioonf busrnessp ,tana s wella s strategyfo r sustainablger owth

t7h,ert n B3o caordm. panv,t akingi nto accountt he yoye;;;;;;;", s and obseruationosr Thep tan siourd be basedo n the swoi"anir,ysrs or the companya nd, intera lia,i ncrudet he mergero f MTNLa ,nd,BSNLr.n i piu, by independent courd arsob e apprised consuttait for greatei clarity.,,

Action taken / planned:

BSNLh asc onstituled unitsa nd Corporate3 gore groupc onsistinogf officers Affairst -os uggest/ r6comr"nO seryicesg,r owtha ndb rand_imaogfe


from all the Business

measures to improve

T'hek eyr ecommendationmsa deb y the CoreG roupa re. (i) Fortificationo f stable revenues treamst hrough concertedf ocus on broadbandN, GN voicea nd enterpriseo usinessw ith major Governmenptr ojects. focuso n

(ii) Focussinogn top 100c itiesf romm onitorinpgu rpose

(iii) Focus on tower & Infra businessa nd"'ieal estate infrastructure monetisation.

(iv) Clearc ut segregationo f commerciaal ctivitiesfr om socialo bligationto ensureb otht opl inea ndb ottomli ne.

(v) centralizationo f various support activitiess uch as pranning, procuremenint cludingm arketinga nd moref ocuso n service customerc are, delivery & service assurance,r evenue managementa nd maintenancoef assetso n decentralizebda sis.

(vi) Valueb asedm anagemenfto r all CAPEXa ctivitiesth ereby onry undertaking those projectsw hich adds varue to the organizationth rough augmentingit s bottoml ine. - (u,vrev?

(uii)s egmenwt isete chnororgoyi lo utr ritnetin iric arperto ilo ut. (viii) Progressivme igrationo i BSNL,sr@; netvvortto< Neit generation

networkt herebye. nsuringc onvergencec,o nsolidationa nd-seamless delivery of various services to end customers across different technologies.

(ix) Realignmenotf workf orcea longw ithi ntroductioonf various to reduce measures the spirallings alarya ndw agec ost.

(x) lmplementatioonf Enterpriserr sysiemss uch as ERp priority on top most so as to enablec entralizedm onitoringa nd fasterd issemination

of information.

n 3 2.1

?sNL may inctude vRS plan n rationatize the manpowera t worker and management level and also sourcesf or funding rfs t/RS ptan. steii-iiyZrco be taken to reducet he costo n maintenancoef infrastrucluraen d iaprtalize'ittii irtut assefsi nctuding buildings." landa nd

Action Ptanned /proposal for VRS in BSNL

Thought he Unionsa ndA ssociationisn BSNLh avea rwayso pposed scheme,t here is vRS an urgentn eed for givings ome ritrr.tiu" opportuhiivto -tto r" who are.voluntariwlya ntingt o take retirementto createw in-wins ituation the employee bothf or and the organizationA.n alternateV RS scheme,w hichi s different fromt he DPE suggesteds chemesi,s also beinge "amineo. Details schemes of the two are as follows.

DPEs chemefo r vRS in Enterprisetsh atm ake_marginparol fitso r loss-making Enterpriseksn, owna st heG ujarast chemei,s asf oiloris:

a' Thec ompensatiownil lc onsisot f s.alaroyf 35d aysf ore veryc ompleteyde ar of servicea nd2 5 daysf ort heb alancbo f serviiet eftu ntilr rt#il;ation. Thec ompensatiwoniil b es ubjectto a minimumof Rs.25,000o1ri -s o oays salaryw hicheveirs higher.H oweverth, isc ompensatiosnh alln ote xceed




the sum of the sararyt hat the emproyeew ourdd rawa t the prevairing for the revel balanceo f the periodr eftb efoies uperannuation.

salaryf or the purposeo f VRSw iilc onsisot f basicp aya nd DA onry.

A19,a.rosf wagesd ue to revisione tc.w ill not be includedin computing eligiblea mount. the

Paymento f bonuss houldc onformt o the provisionsin the Bonus Act;

.V!1R1Su.atL eavem ay be encashedin proportionatme easureu p to the dateo f

i .


Thes chemew illb e opent o all employee(se xecutiveasn dn on-executives) moret han5 5y earso f age.

with a viewt o maket hes chemea ttractiveth, ee mproyeoep tingfo rV RSw iil be givena dvancein crementnso tionalloyn the oat6 of retirjmenti,n the scale9 f payb eingd rawnb y him/hewr nicnh e/shew ouldh avee arnedin the normacl ourseti llt hea geo f superannuatioHne.r en, ormaml eanso ntyt nose incremenhtse /shew ouhh avee arnedin .hise "irtingp ays calew ithouitaking into consideratioann y extraneoufsa ctorsl ike p-oisibteti me bounolpost basedp romotioncso, mparisowni thj unior,e tc.i o illustratteh e point,a n ennqfgveoep tingf or VRS afterc ompietintgh e age of 56 mayb e br"r.o s additionainl crementosf pay,i f he/sheis nots tag,r-atinogth, erwisset agnation incremendtsu em ayb ea ddedo nt hed ateo f r"ti'r"r"ritu ndeVr RSs cheme. The notionapl ay so fixedw ill be countedfo r the purposeo f pensionary

benefitasn do therb enefitssu cha s leavee ncashmentAt, etc.

Then otionainl crementgsr antedw illb e grantedo y asrul as a speciacl ase

!o1t le purposeo f VRS. No additionaplE nsiocno ntributiowni l rj" gil"n bv BSNLt o Dor for the normailyre maininsge rviceo r ine emproyesee eking VRS.

VRS will be opent o all, i.e. withou!r ny restrictioonf service,G roupo r GradeT. he Managemenhto weverw, irrr eserveth e rigrrtto accepto r reject anya pplicatiowni thouat ssigninagn yr easonth ereof.

i l t .



DPEg uiderine[os M No.2( 32)r97-DlE(w c) cl-xXil dated5 thM ay2 000] providefo r budgetarys upportf rom the Govi.t o the marginallpy rofit


makinge nterprises loss f91VRSi mplementatilonn v.i ewo f BSNL'sc urrenfti nancial

fUlloTl ,lri,tvi,,Lf"Vtwili!i":ritt , lQpqb"i

  • Ine DoT may give its approvatlo .thep roposa(ro ptibn1 or option2 ) in principlea fterw hichd iscussionws ill be heldw itira ll siakeholders Associations includingth e andt he Unionsfo rf inalizintgh es cheme.

    Followinga ctionsh ave been initiatedb y BSNLt o reducet he operational expenses.

    (i) The TDM TAXs deployed across the country operations to cater to landtine are progressivelbye ingr eptaceo-witthh e lp TAX costo n power,A MC. to reduce

    (ii) Existinge mployeesa re being retrained and reorientedto undertake new set of activitiesin saresa nd marketinga -tiviti"r".g. andV rjay. pioi".i-uo.rn

    (iii)N o additionarm anpoweri s being deproyed broadband arthoughn umber of connectioniss increasing-atht b ;;te of 1s%t o 20%p er ands everanl ews ervices year are beingintroOuceO.

    Followinga ctions have been initiatedb y BSNL to capitalize assets.includilnagn da nd its telecom building.

    (i) A dedicatedb usines6u nit cailed ,New Business,h eaded by an ExecutiveD irectorh as beenc arvedw ithinB SNL focus to provides ustained on reveragingth e huge infrastructuiruec n as Towers, buitdingosf BSNL. randa nd

    (ii) BSNL is. als.o using its training infrastructure advanced for impartingb oth and basicr evertrainintg-o p .rp".tiie participant. (iii) Auctioningo f higherb andwidthlt ix'e' ramooai

    providers to carriersa nd service

    (iv) seilingo f internationabra ndwidtho n Bharat Lankac abre (BLC)t o carriersa nd alsot o leverageit s upcomingc ;pacity cable on EIGs ubmarine


    "ES^rL ma1d hife itt ottt ttiriii@, anf non-strategic. cD/ot efecomm a1s ee{Qooemment suwort tof unf strategicn on-recopera1cteo i to ensures wtainailk growtfr of as!,tL. ,,

    Them ajorc ontributortos BSNLl ossesi,n additionto disproportionate wagec ost,a ret he variousu nviable salary& telegrapshy stemr,u ralw i-Maxe tcw Ih9itc9h. 9To perationssu cha s ruralw irel ine, BSNLn m olun askedt o do as parto f sociaol bligation.

    ePc-SonNohLma sic. aallrleya dtya kenu pw itho oJ fo1p rovidindgu ec ompensatiofonr v arious unviablsec hemews hichit has. r".it"Jin thep ast.T hes ame includeads a p"t,9f the 1.00d ays was actionp rana nnouncebdy Hon,Moc&rr. Furthedre cisioinn thisr egardis awiiteOfr omD OT.

    Furthear ll the newp lansi n whichD or / USo intends implementation to involveB SNLi n its and maintenancseu cha s Nationagii oaonandp lan( providing broadbancdo nnectivittoy. akhsp anchayat,sr)" o"ing due compensation anaryzedbByS NLa nd is being workedo it ro' ^pr"renting, operatinga nd maintaininthge s aidi nfrastruiture.

    ln additiona,l lt hem ajore xpansionths atB SNLs hailb e undertaking as mobilee xpansion, inf utures uch broadbanedx pansionN, GN deproymenett c shailb e governebdy BSNl..purebryy the businesrse quirement. such.asc overing Thed eproymepnrta ns villagets iooo populatiooni' t 3g0gp opulatioent cs hail examinedp urelyf romt he business be requiremenTt.h e cases,o thert hant hose governedb y businessr equiremenst,h all be executed, compensation provideda dequate isg ivenb yt heD OT/ USO.

    *$tL to fr'epar1':Y 'f* tfiei mpfementation of tfie

    aaiousm easure,rsu *riri-Oy CivIO, *SWt 9on* prwiig itsp e'fo*inu' ffie pfant ransfating into


    anrre sponas'sli ,uiki''llal ^re

    fevek, in order to compLete LI tYI t tL tLe 'ee ,vv-"----

    fi ff : JiXrt J,.:,

    t i:li'l"";;X, ,ii]:'fni "?Y ;;v * i ) oi i - t z ^' " s i v e n i n r a b r e l

    n.'r I 1,


    Table 1: MO[B and Financial for 2O11-12


    definedT.h es ameil ;;;; furthe-r oiriiinrt"Ja tt her eveot f circresT.h e targets

    havea tsob eenm ad"T 9?l"t^'Jil'ii'#I:1iU*tance


    [X:?"'ilf" Ffi 3 i6;;;ot er roramnc eM a na seme nt svstem)

    o^ '!^',t? : [ : i,'i il :: :,::i,,;:''r:::J?'


    pertormanocef a SfVi-rrgu taliYro ,r'io-tixi timety-io'rrectmiveea surefo' r


    ii,i i i g itt con tni u e d gr owth"'

    ffi al tars e ts1 * ?::n" :['ffi;
    .';lX 'l?i?l;1r'" ,1

    or B s N L

    (ssA/ circle,)n .iro,nn'?t'inB-r.u;.;rip"";f; ate ottice(m onthlayn) dD oTo n

    quarterlbYa sis'


    T r ' , ( . 1 { ' ,


    File No. 10-l6/2010-5U.I

    Ministry of Communications& iT

    Departnrento f Telecommunicatoi ns

    l'SU Division, SancharB havan,N ew Delhi

    l2d I

    oY'of -fJ


    t--1- , _5llL

    ' . f

    The CMD.

    ' \


    .. .i: J-\'Lil

    1 ' { L I


    / - i \ ,

    r ) I , l l l

    ' - \

    Subject: 866 Meeting of the Board for Reconstructiono f Public Sector Enterprises( BRPSE) to

    roview the present status of performance and financial position of Bharat Sanchar Nigam

    Limited (B SNL) hel d on 2l .12'20 lo-f ouow-UJclion re garding.


    I am directed to say that meeting of the committee constituted for analyzing the inputs

    receivedf rom BSNL and ethcr Divisions of Departmento f Telecommunicationsa nd to finalizc a

    restrucruringp lan for its onwardt ransmissionto BRPSEl vas hold undert he Chairmanshipo f Member

    (Services)T, elecomC ommissiono n 25'05.20

    Z. Rccommendation-wisien puts receivedf rom BSNL in the matter and the input provided by

    Administrator( USOf) vidc letter No,30-8/2006-IIS[d ated 24-5-11w erc discussedin detnil. As

    decided in the aforcsaidm eeting,t sSNI, is requestedto furnish further inputs on the following flor

    considerationd uringt he next meatingo f the committee:

    (i) RecommendatioNno "l {psra 2.18.1( i)} - To suggestth e ways throughw hich operational

    Ievel synergr bcf'*,eenB SNL and MTNI, can be achieved, within the presentr egulatorya nd

    legal framcwork,i n consultationw ith MTNL.

    (ii) RecommcndatioNn o.2 {para 2"18I (ii)l BSNL may subnritb usinessp lan as well as

    strstery for sustainableg rowth basedo n SWOT Analysis in terms of financial figures i.c

    cost,e xpenditurca nd resultse xpected.

    (iii) RecommendatioNno .3 {para2 .181 (iii)i * BSNL may submitd c{ailsa boutc ategory-wise

    idcntification of surplus stafT a-s well as broad financial implications of suggested VRS

    options. Further, steps envisaged to reduce cost of maintenance of infrastructure, results

    expected in hnancial terms and the time framc to aohieve intended results may also be


    (iv) RecommendatioNno .4 {para2.l8.l (iv)} - Detailso f Strategic& non-stratcgiacc tivitiosa s

    well as non-recovorablec ost on strategic activities may be intimated after taking into

    considerationth e views of Administrator( USOF) as communicatedv ide letter No.30-8/2006-

    USF dated 24-5-11, which has already been handed over to ths BSNL during the meeting.

    (v) RecommcndatioNn o.5 {para 2.18.1 (v)} - The comrnentsfu mishedb y BSNL w.r.t. this

    reeommcndatione re not in accordancew ith the recomrnendntiono f BRPSE. tsSNL may

    revisit it and submit the dctails strictly in the rnanner specified in the BRPSE


    7,-- Required details may please be sent on top priority as the next meeting of the committee is



    to be held soon.f or which a separatein timationw ill be sent. -0{cf ^ ..u-,rel

    ) /'fur<-n\"^q '

    \ \p, \ -,

    \ 1.n/ t<,{'"^J dtafl +)-'c-f\-

    o *)

    -' '

    1\b -31,".';;3it:l5 \fl, *

    ^ 'r "f5fit#iyJo: ]\tembJ(rS ).Advisor(FJ)S, (T) Tele:2 3036019123372494 T(7 ta"'ftl)\-Y-=" ' : : ; ,_ia".:,

    t 0 0 / t 0 0 4 u l d n ! s - r - f l 8 du l t t o B t z t o 0 zLL0 ) ' t ' dot i g L l L o z g \ i l



    I T

    I rrr

    I t +l l

    r l , r ' . r t ! L r l l l ! r " r ! F , q l i r.r1 1! :t t 7:4 r_t-l J t r IFi F' i { l _ l - I - l l r , jUFT r



    No. 30-El2006tUSF

    Government of India

    Depertmeut of Telecommunicstion

    Universal Service Obligntion Fund

    Sanchgr Bhavan, New Delhi-lf 0001

    Dated: 24.f.)1


    The Membcr(S)T, elecomC ommission

    Dopartmento f Telccommunioatious,

    SancharB havan,20A shoksR oa4

    New Delhi 110001

    subject; support from DoTAJSOF for BSNL's existing rural wire lines (and netwofk)

    Refcrencc,c MD BSNL's Letter No, 1-1201I/rP/BSNL dated 8'5'11 0n the

    abovementionedsu bjecga ddresscdto Secretaryff ) and endorsedto the undersignedfo r

    comments/necessaar)c't ion.



    analysing the inputs reccived fiom BSNL and various Divisions of DoT and to finalisc a

    restructuringp lan for onwards ubmissiont o BRPSE,I would like to bring tp kind notice

    cefiain issues with regard to continuance of USOF suPport for BSNL's rural wire line


    3. Thesea rep lacedi n the enclosedA nnexure'

    Enc[: As above

    - ( . t

    r ' , ' i (


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    'rrgA'-*9n '

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    1 1

    ' l * r . r . ] f , u , r : t l 1 1 i : l l : l ? ! 1 t l . j i


    t t IFt Pt j l J - I - j l l l j l - lFT , , r ,





    usoF had earlierg iveni nputf on TRAI'5C onsultation paper No' 2/2008

    dated2 1.1.08r egardingth e mattero f ADca nd lts subsumptionin to USoFw herelna

    view had been expressedth at usoF should not be call upon't o subsidiset he

    incumbent'sw ire llne network lieu of ADC.D etailed reasoningfo r the same was

    providedv ide tetterN o. 30-8/2006-USdFa ted8 .2'08' (copye ncloseda s ANNEXURE

    t t).

    2 . S u b s e q u e n t l y , b a s e d u p o n t h e d e c i s i o n o f t h e c o m p e t e n t a u t h o r i t y ,


    dafeii1 8thlu ly, 2008t b enablEU SOFto stippbrt RuiSlH ouseholDd ELsin stiiltedp rlor



    Recommendatiodnas ted2 7thM arch'2 008'

    3. Now,a caseh asb een madeo ut by BSNL fOr continuationo f suppor[f or its

    Rurawl ire line Networkb eyondt he 3 year periodw hiche xpires in July 2011' The

    quantumo f deflcitp rojectedb y BSNLis of the order of Rs'9306c rorep er annum'T his



    GovernmenVDoITn. t hisr egardt,h e following comments may kindty be considered:-

    @ t ) v 2

    F , q l i ( r 1 1 ! : j ! 7 2 4 1 1 i J t l IR P i j l J - I - l i Gl - lTFr ,


    (i) BSNL'Ws ire LineN etworkw as installedIn the ooT perioda nd its CAPEXw as

    fundedb y DoT.T hisn etworkh asi n the pastb eens upportedth roughA DCa ndv arious

    USOFs chemefso r supportingR DEL(sr uralh ouseholdli nes)i ncludihgin ter aliat he

    abovem entioneds ubsidyi,n lieu of ADC.T het otal USOFs upportb y way of various

    RDELs chemesa mountsto Rs9 139.08c rorea so n 31,3.11F. ufther,U SOFh asa lready

    supporredB sNLb v way of wir:e line Broadbands chemew here Rs.150oc rore of

    subsidyc anb e availedb y BSNLfo r Broadbande nablemenot f about2 8,000r uralW ire

    linee xchangesI.n spiteo f variousf orms of suppoftf or BSNL'rsu ral operation$t,h e

    numbero f ruralw lre linesc ontinuesto declineT. hisw ouldi mplyt hat ruralc ustomers

    are nor satisfied with the quality/utility of rural wire lines connectivity

    (noh,vithstandlng the low/below cost tarlffs) in comparison with wireless

    connectionfso r whicht ariffsa reo rlf orbearance.

    (i i) WhileT RAI'se stimationo f Rs2 000 crore per annums upportw as based

    on the 90 takhR DEIws hiche xisteda so rr1 ,4.02T, RAIh adu nderestlmatetdh e decline

    in theseR DEL5b y way of disconnectionAs.s per TRAIe ach nOtl *ts to reieive a

    monthly support of Rs 214. An amount of Rs 3O0 crore was attributed to be the

    reductionIn supporto n accounto f disconnecteRd DELST.h ist ranslatesin to estimate

    of dlsconnectionosf about1 1.68t akhR DELsA, ctuallyb, asedo n datac ollectedf rom

    BSNLth e declinein numberso f suchR DElss tooda t 36.55l akhR DEIass o n November


    61 qr ril

    (iii) Between Aprll 2008 and March 2011, itt

    forms includlngi nter alla the supporte xtended

    liner haved eclinedb y 19.7l akhs.

    spite of USOF support In various

    in lieu of ADQ BSNfs rural wire

    (iv) tu per its mandate and legal framework, any support from uSoF has to

    benefitt he rural populationb y way of accesst o affordablet elecommunications

    servicesU. SOFs chemesh oulde nsurec oste ffectivec, ompetitives ervicep rovisioning

    and a levet pllying field rather than supporting the survlval of a specific

    /u11 I l r " i 4 F , 0 , i i ' . r 1 1 ! l l : 1 7 ! ' l L r : : l i t I F l F i ; I _ r - I - : : i r : i l _ l P T , i

    technology/operatoars such. . The rnarkets cenarioa t the time when ADCw as

    Introducedi s vastlyd iffererrtf rom the situationt oady. While in 2002 the rural

    teledensityw dsI .ZVot,o day it is 331%.F urther,i t is cleart hat as thingss tand,t he

    healthyg rowth in ruralt elephonesis comingn or from wire linesb ut from wireless

    services.A s of February2 011,E RUd ata indicatest hat 97%o f rural telephonesa re

    on wirelesst echnologlesa nd privateo p€ratoniw ere providlng8 8%o f rural wireless


    (") lt asa n acceptedfa ct that wire linee xchangeasr e a valuablea sseti n so much

    that they can provideb roadbandK. eepingth is aspecti n view,B SNL'rsu ralw ire line

    broadbandis alreadyb eings upportedb y USOFin a resulto rientedm anner'W lth

    adequatee ffortso n BSNL'psa rt this schemes houldh aveb eenl everagedb y them to

    reverseth e declineI n utilityo f ruralw ire lines.S of ar 2.58l akhc onnectlonasn d4 368

    kioskszh ave been providedb y BSNL.F ieldl evel reportso f interactionw ith rural

    subscriberps oint to poor qualityo f servicea nd a lack of maintenancec/u stomer

    relationsa nd marketinge ffortsb y BSNLle adingto poors alesa ndr evenuesin spiteo f

    a faird emandfo r ruralb roadbandS,u bsiddyi sbursemenint thiss chemeis c ontingent

    upon prouisiono f functionabl roadbandc onnectionasn d kiosksa per terms and

    conditionso f USOFA greementsA. s on date,B SNLh asr eceivedR s'1 15'77C roreo f

    subsidya gainstth lss cheme.

    (vi) lt ls clear that Eeneraliseds upport againstr ural exchangesw ithout any

    tarBetsr egardingo ptimumu tilisationo f the wire linen et work is not helpingto arrest

    the decllnein the numbero f wire llnec onnectionasn d hencec ontinuancoef such

    supportw ouldt antamountt o the wastageo f physicaat ss€tsa ndf irranciarle sources

    by wayo f underutiliselda ndl inee xchangeasn dw asteds ubsidys upportf or the same'

    tn sucha situationi t would perhapsb e bett€r to optimiset he utilisationo f these

    assets by to sharing them with other operators' unbundling would generate an

    incomes treamf or BSNLv ide rentalsa nd enhanceth e utilityo f thesen ationala ssets

    '32.99Yoa so n 28.2.11

    'As on 30.4,11

    @ r)r.r4

    l f , , / i 1 5 t i l 1 1 1 2 : r i 4 F , r ) r l ( r 1 1 i t 3 ? 2 4 5 i I I I F i F ! U - I - i I J U F T ' . ' .

    asc ompefltlvee ntryi n the landtineb roadbands egmenwt oulde ncouratei nnovation

    andi mprovedc ustomesr atisfaction,

    (vii) Even if some additional form of result oriented support was to be

    con$iderefdo r ruralw irel ines,it is a moot pointw hereU SOFs houlds upportB SNL's

    net worka sp ert heira ctuale xpenditureo r asp er industrys tandardr egardingp er line

    net costs. Supportingo n the basiso f actualc ostsi ncludinge mployeer emuneratiort

    ando fficea nda drninistrativeex penseisn this mannerw ould neitherl ncentiviseB SNL

    to ratlonalisceo stsa ndn or wouldi t incentiviseB SNLto enhancere venues.

    (viii) TRAIh asb eenr nindfuol f the needt o improvee fficiencya, ttains ustalnability

    andr estrict he periodo f supporta si se videntf rpm the followingc omrnents:

    "ADC wos not to make the incumbent perpetuolly dependent on

    supportb ut to allowt hem timef or adjustmendt uringt he periodo f transition

    from o monopolisteicn vironmentw, herec rosss- ubsidizotiown osp ossibleto, a

    com petltl ve b us i n ess e n v i ro n m e nt'

    (source:C onsultatiorPr aperN o .2/2008)

    Furthert,h e Authoritiesh avea lsor emarkedth at

    "At this stdge the Authority is required to bolance two moin obiectives.

    Flrstly, ta increase the dttractiveness of providirtg connections ond odequate

    services in oreas thot would otherwise nat be a focus 'of attention for

    commerciolly oriented service provider in o competitive environment, i.e, rural

    and remote SDCAw hich ore particularly high cost ond low revenuea ress, This

    alsoi ncludesth es uppartf or sustainabilitoyf existingru ral wirelines.S econdlyt,o

    make this support efficient tn such a woy thdt i(s level gets adiusted to the

    prolitabitity of rurot operdtions. The support hould get eliminoted when the

    averogec ost gaes down eitherb ecouseo f increasingt eledensityin the area or

    falt in the network operoting costo r increasel n revenue. lt Is also very lmportant

    to keepi n mind that whatever schemeis firtzllsed to rneet the sbave oblectlves

    should nat provide incentlvesf or incurrlng lossesh ut should Promotei mproved

    performa nceo l the serulcep rovid e/'

    (sourceC: onsultatioPn aperd ated2 I'tJanuary2, 008)

    TheA uthorityh asa lson otedi n the IUCR egulatiodna ted2 9thO ctober2 003t hat:

    ar i' irt"


    2 0 1 1 1 2 i ) 4 F A t { r ' t 1 ? 3 3 i 2 4 9 1 TIR PSL-II - 5 : I JUPT, , .

    "For BSNoLn d MTNL,t o the extentt hot the omounto f ADCd oes not covert he

    futt amount of the deficit over time, the Authority rtoted thdt they have benefited on

    account of being allowed entry into cellulor mobile without ony entry fee. The

    Authortry also hopes that the deficit would he made good by the proftts thot these

    srgonisations will earn from their cellular mobile and WLL(M) services, bearing in

    mind the rapid subscribegr rowth being experiencedb y these services. This is

    important to ollow more flexibility ta the torlff developments, which are o maJor

    contrlbutory fdctor in spurring growth, teledensity ortd commercidl octivity in the

    country. The Authority will be exonining oll these fodors ln greoter detail at the

    time of the next review of the ADC regime."

    In the ExplanatorMy emorandumto the IUCr egutation2 007d ated2 1s March,2 007,t he

    Authorityh asn otedt hat:

    'BSNL has not octively responded to the key purpose for which ADC was given,

    tt may be recalled thot ADC hod specific purpose to be fulftlled in a time Jrame (1.e.

    tariff rebolancing).F urther, BSNLls now offering tariff regimef or bundled serulces

    which appear to be having some element of cross subsidy.'

    In viewo f the above,it ls stronglyfe tt that the Departmenst houldr e-consider

    the continuanceo f support to BSNLa galnstt he RuralW ire line Network

    withoutl inkingi t to quantiflableim provements-idne liverables-sueh-as-quality

    and numbero f ruralc onnectionsb,o th voicea nd data.l f unbundtingis the

    meansto achieveth lst hent he sames houldb e considered.

    RegardinBg SNfsc lalm of havingc ontributedm ore to the fund than having

    receivbds ubsidyi,t wOuldb e pertinent o notet hat aso n datem oret han 85yo

    of USOFs ubsidyh as been disbursedto BSNLw hile its sharei n the rural

    telephonyis around1 5%a nd its shareI n USLl esst han4 0%. In fact in the

    financiayl ear2 010-3.1B,S NLh as received9 6.83% of USOFs ubsidya gainsta

    22"8Ysoh arei n USLc ontribution.

    ln fact, given the facts stated above, a view could be taken that supportlng

    BSNLi n this mannera mountst o crosss ubsidlzationo f its costs by other

    operatorsw hichi s.nota justifiableu seo f the USOF und'

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    As regards,t he calculationsp ut forth by BSNLi,t may be seen that TRAI

    calculationrse jectedt he overallm ark up of 75CI%co nfinedt he mark up to

    only3 costc omponentsi,,e .e lectricltyf,u el andp owera nd networko perating

    costs. These costs constitutes only about 76% of OPEX and hence, the rnark

    up factoro f 1.5w asr tot appliedt o the total averageO PEXb ut was llmitedt o

    the sumo f these3 componenttso arrivea t ruralO PEX.

    In BSNL'sc alculationsO, PEXi tems such as employeer emuneration,

    administrativee xpensesL, igenseF eese tq have been evenly distributedi n

    proportiont O the percentageo f rural and urban assetsw hich maY lead to

    inaccuraciesa s sofile cost items are not correlated to assets, Thls

    methodology also does not take lnto consideration the urban-rurat

    distributiono f subscribersC. learly,c eftainc omponentso f OPEXw ould be

    dependenut pont he subscribebr ase.A lso,i t is not understoodw hy, spectrum

    fees haveb eena ddeda s a componenti n the calculationo f OPEXfo r Rural

    Wlre line telephony.T o calculater evenued eficit it appearst hat fixed WLL

    revenuesa nd costsh aveb eeni ncludedO. n the wholea much more detailed

    analysiiss c alledf or,

    i( * t ***++rarll t f t *lf +* ** ** + * * rF * *+*+ * { ' l ' * t+ * *+ * * * * i *'} * * * * * {r * t* t +++

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    {a) M-09426254999