Concerned over deteriorating financial health and competitiveness of state-run telecom firm BSNL, the government has constituted a high-level committee, headed by Sam Pitroda and Deepak Parekh as member, to look into the issues and give recommendations within a month.
This was decided at a meeting chaired by Prime Minister Manmohan Singh last week to review the performance of two telecom PSUs – BSNL and MTNL.
"There was an agreement that the situation of BSNL required immediate action to address both the short as well as long term issues affecting its financial health and competitiveness," the Prime Minster’s Office (PMO) said in New Delhi.
On the position of another PSU – MTNL (that offers services only in two metros of Delhi and Mumbai) – was comparatively better and the issues concerning it be considered in the normal course, separately, it added.
The committee, headed by Pitroda, Adviser to PM on Public Information Infrastructure and Innovation, would also look into BSNL’s ongoing Rs 35,000 crore GSM expansion tender.
The tender has been marred by controversies and is in limbo since last more than a year and the PSU has not been able to place the order affecting its market share in the fastest growing mobile telephony.