BSNL has issued austerity measures to cut costs

New Delhi: Financially battered Bharat Sanchar Nigam Limited (BSNL) has issued austerity measures to its circles in order to cut costs, Communications Minister Ravi Shankar Prasad said on Wednesday. "Due to fall in revenue, payment of salary of employees and statutory payments are the first priority. Thereafter, bills of contractors etc, are taken into consideration for payment," Prasad said while responding to a question in the Lok Sabha on Wednesday.
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At this point, no shortage of contractual labour is anticipated, he added.

The task of salvaging the PSU's finances

The austerity measures come at a time when the public sector undertaking (PSU) is desperately trying to turn its finances around. It has also chalked out a lucrative voluntary retirement scheme (VRS) for employees above the age of 50 years to reduce its massive workforce.

Govt working for revival of struggling BSNL

While responding to a separate question in the Lok Sabha on Wednesday, Minister of State for telecom Sanjay Dhotre said that the government is working to revive BSNL and the results will be visible soon. "The government is trying for the revival of the BSNL. You can see the results very soon," he said during the Question Hour.

Dhotre also said the state-owned enterprise is providing 2G, 3G and 4G (at few locations) mobile services in its Licensed Service Areas (LSAs).