Modi govt jumps to rescue corporates in telecom sector even as it systematically sidelined public sector BSNL

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Modi govt jumps to rescue corporates in telecom sector even as it systematically sidelined public sector BSNL



Now, the Finance Minister has said that only private operators will start 5G service. So, once again, BSNL is going to be discriminated against and sidelined. The question is, how long will the government discriminate against BSNL in favour of private players?On October 24, 2019, the Supreme Court delivered a judgement, according to which the private telecom companies were directed to pay Rs 1.69 lakh crore to the government as AGR dues. In this, the share of Vodafone Idea alone is Rs 58,254 crore. Consequently, Vodafone Idea went to the brink of bankruptcy. However, the Modi government swiftly came out with a rescue plan. According to this, the spectrum payment and the AGR dues payment were allowed to be deferred for four years. In addition to this, the government gave an option to convert the interest on the deferred spectrum payment and AGR dues into equity.Accepting the decision of the government, the Board of Vodafone Idea has allotted equity to the government, in lieu of the payment of interest of Rs 16,000 crore. In this way, the government of India has now become the biggest shareholder of Vodafone idea, holding 35.8 per cent of the equity of the company.This is a classic example of the extent to which this government can go to save corporates in the telecom industry.However, even after availing all help being extended by the government, private telecom companies never hesitate to loot people. From November 26, 2021 onwards, Airtel and Vodafone Idea have raised their tariffs by a whopping 25 per cent. Similarly, from December 1, 2021 onwards, Reliance Jio raised its tariff by 20 per cent.But the BSNL did not raise its tariffs.Even though BSNL doesn’t offer 4G technology, in December 2021, it added 23 lakh new mobile customers. In January 2022, it added 25 lakh new mobile customers.The existence of BSNL as a vibrant public sector company is very much required in the interest of the people of this country. Hence, all possible pressure must be brought to bear on the government to ensure that BSNL is not starved technologically.(IPA Service)Views are personalCourtesy: People’s Democracy



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