BSNL Union Seeks PM Support On Land Monetisation Plan

The PMO had rejected the proposal earlier.

- RAJESH KURUP

The Sanchar Nigam Executives’ Association (SNEA), an employees’ union of Bharat Sanchar Nigam Ltd (BSNL), has sought Prime Minister Narendra Modi’s intervention to reconsider a proposal to set up a Special Purpose Vehicle (SPV) for the ailing PSU’s land monetisation plans.

This, along with the merger with Mahanagar Telephone Nigam Ltd (MTNL), was earlier rejected by the Prime Minister’s Office (PMO).

Separately, BSNL, which had paid August salary after an 18 days’ lag, might be staring at a salary default for September. This is because the company is unable to generate enough funds from internal accruals to pay wages, a source close to the development said.

“Formation of an SPV is necessary for taking over bank loans of BSNL and making it a debt-free company. This proposal has the potential to generate additional revenue for meeting the future expenses, only if an SPV is formed,” said a letter addressed to the Prime Minister, a copy of which was reviewed by BusinessLine.