The telecom department is learned to have requested state-owned BSNL to put all tenders and buy orders on hold because the enterprise is dealing with economic disaster. The finance department of BSNL issued an order in this regard on June 2, directing all its circle heads to take previous approval of company officers placed in Delhi before floating any new tenders for capital expenditure, consistent with legitimate sources.
“The order issued to circle heads on June 12 says that BSNL is passing through transient financial stress and isn’t in a role to clean the collected liabilities,” a BSNL legitimate on the circumstance of anonymity advised PTI. He stated the BSNL’s Finance Department received the path from the finance wing of the DoT to put on hold all capital expenditure.
The order has requested BSNL officers to put in abeyance develop buy orders and purchase orders of tenders that have been already finalized until in addition coaching. BSNL posted operating earnings of Rs 672 crore in 2014-15, Rs 3,885 crore in 2015-sixteen and Rs 1,684 crore in 2016-17. Like, different telecom groups, BSNL has been dealing with pressure in sales after the new entrant Reliance Jio entered the market.
BSNL Director – Finance, S K Gupta final month shot off a letter to all Chief General Managers of telecom circles, flagging the “fiercest ever opposition” being faced by way of the telecom sector and said, “predatory tariff offerings through the competition” has brought on a sharp decline in revenue from offerings.
While promoters of private telecom operators, including Jio, are investing thousand of crores, BSNL is looking forward to government selection on the allotment of the 4G spectrum to compete within the marketplace.
The employer is predicted to have the largest optical fiber cable network of 7.5 route kilometers that may assist it in building an excessive-velocity network. However, it wishes to buy equipment to extend offerings.
BSNL has sought authorities’ approval to monetize its real property. However, the decision is pending with the authorities.