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DoT to negotiate with unions over BSNL overhaul

08 Jul 2010
00:00
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India's telecom ministry has set up an internal committee to help reach a consensus with the unions over plans for a dramatic restructuring of state-owned operator BSNL.

The committee will seek to reach a consensus with the unions over the proposal within a month, Business Standardsaid.

An adviser commissioned to determine the best way of turning around the struggling operator suggested sweeping changes, including offering retirement to a third of the company's 320,000 staff.

He has also proposed BSNL divest at least 30% of the government's stake in the operator, outsource its network management and seek a chairman and other senior officials from the private sector.

Each one of these proposals has been opposed by BSNL's union, but are viewed in government circles as necessary for stimulating recovery.

BSNL is expected to have run at a loss this financial year for the first time in its history, the Standard said. Its market share has sank to 12% in the face of hot competition and a raging price war.

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