DoT mulls monthly review of BSNL performance | india | Hindustan Times
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DoT mulls monthly review of BSNL performance

In a bid to turn around loss-making PSU BSNL within six months, the telecom ministry has decided to review the performance of all circle heads of the service provider on monthly basis.

india Updated: Jul 03, 2011 10:53 IST

In a bid to turn around loss-making PSU BSNL within six months, the telecom ministry has decided to review the performance of all circle heads of the service provider on monthly basis.

"There will be a monthly review of all the 24 zonal directors. It is necessary as quarterly monitoring is a very long period for assessing the performance of a commercial organisation like BSNL," a DoT source said.

BSNL, once the country's flagship telecom company, posted a net loss of Rs 1,823 crore on revenue of Rs 32,046 crore in 2009-2010. It is also likely to post losses for the financial year ended March 2011. The company had a net profit of over Rs 10,000 crore in 2005-06.

Further, the source said that since it is a difficult task to monitor a large-sized PSU on profitable platform, department of telecom (DoT) has decided to adopt revenue--monitoring criteria for reviewing a commercial organisation like BSNL.

"Profitability clause should not be the criteria for reviewing performance of large-sized PSU like BSNL as it is the profitability of telecom industry (which )is falling. Hence we have decided on adopting revenue-monitoring criteria for reviewing a commercial organisation like BSNL," a source from DoT said.

In terms of mobile subscribers, BSNL has been relegated to the fifth position from the second rank it held just a few years ago since the company has failed to match the competition from private players like Bharti, Vodafone, Idea and Tatas.

Earlier, DoT had instructed BSNL directors in all the 22 territorial circles to mop up monthly revenues by 25%, failing which strict action will be taken against them.

"If any any circle fails to achieve the revenue target, we will transfer people on large scale. The idea is to make higher officials accountable.

"The biggest challenge before us is to bring BSNL into the positive zone. For an organisation to grow zonal directors should be made accountable. We have done this in the first phase and have been tracking this for last two months," he added.

Even telecom minister Kapil Sibal had said that the organisation must have targets for circles, according to which if the officials don't perform they will be transferred out while those who meet the targets will be rewarded, like given a posting of their choice.

Under the revenue maximisation strategy, BSNL's circles have been divided into three-revenue wise categories, including those with less than Rs 10 billion revenue, those with Rs 10 billion-Rs 20 billion revenue and circles with revenues in excess of Rs 20 billion.