Goverment asks ministries to choose BSNL, MTNL

In an attempt to enhance the revenues of state-run telecom firms, the Centre has proposed that Union ministries, public sector undertakings and autonomous bodies give preference to BSNL and MTNL.

“We are proposing preferential treatment to BSNL and MTNL services in Central Government Ministries, Central Government public sector undertakings and autonomous bodies to enhance revenues,” Minister of State for Communications and IT Killi Kruparani said in a written reply to the Rajya Sabha on Monday.

“The losses of these two companies were due to a sharp decline in revenue and increase in expenditure,” she said. “The principal reason for the increase in expenditure is mainly due to a large legacy workforce, as a result of which employee expenses are currently at around 50 per cent of revenues for BSNL and 103 per cent for MTNL,” she added.

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