Communications and IT minister Kapil Sibal has sought Prime Minister Manmohan Singh's intervention to revive loss-making public sector units (PSUs) - Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL).
In a letter to Singh, Sibal has pointed out that the two companies are under so much financial stress that MTNL's networth has completely eroded, which BSNL is expected to make losses of Rs. 10,000 crore during 2012-13.
"Due to change in business environment and hyper competition in the telecommunications market, financial positions of BSNL and MTNL has deteriorated in last three to four years. Although the results for fiscal year 2012-13 have not yet been declared, I expect the networth of MTNL to have been completely eroded. BSNL is expected to make a loss in the range of Rs. 10,000 crore in the current fiscal," Sibal said in the letter.
Suggesting that a group of ministers (GoM) should be constituted for reviving the two PSUs, Sibal said that "Unless immediate measures are taken to revive and revitalise these PSUs, they would turn sick shortly."
He has also sought financial support from the government for reviving the two PSUs. "Immediate action together with financial support would be required to put these PSUs back on track."