Public Sector

Centre mandates all ministries, public depts, CPSUs to use BSNL, MTNL services

Centre mandates all ministries, public depts, CPSUs to use BSNL, MTNL services

Centre mandates all ministries, public depts, CPSUs to use BSNL, MTNL services

Centre mandates all ministries, public depts, CPSUs to use BSNL, MTNL services – The mandate for all public sector units along with all ministries and public departments is issued by the Central Government to use telecom services by of State-run Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL).

Recently as the government of India has applied this mandatory utilization of capacities of BSNL and MTNL, inter-alia, approved the CPSEs, central autonomous bodies,” a memorandum issued by the Department of Telecommunications (DoT) said.

The memorandum dated Columbus Day, was issued to all or any secretaries and departments under the Centre following consultation with the finance ministry accompanying the memorandum by Department of Expenditure’s note mentioned that the choice to mandate the utilization of BSNL and MTNL telecom service was taken by the cupboard as all the Autonomous organizations under their control for mandatory utilization as per necessary instructions given to the ministries to use CPSEs/Central of BSNL/MTNL network for internet/ broadband, landline and leased line requirements,” the DoT memorandum said.

To relieve the state-run telecom firms this order comes as a relief for the loss-making who are losing their wireline subscriber base, as MTNL posted a loss of ₹3,694 crores in 2019-20 and an overall BSNL recorded a loss of ₹15,500 crores.

From 2.9 crore in November 2008 to around 80 lakh in July this year, BSNL’s wireline subscriber base has eroded very much also MTNL’s fixed-line customers have come down to 30.7 lakh in July this year.

State-run telecom firm BSNL has raised quite ₹8,500 crores through sovereign guarantee bonds to expand its network and manage operational expenses and through sovereign bonds, MTNL is yet to boost ₹6,500 crores which were approved by the cupboard in October 2019, as a part of its revival package.

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