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[31.07.2009]United Forum meets Communications Minister

United Forum leaders led by Com. V.A.N. Namboodiri, Convenor, met Thiru A. Raja, Communication Minister on 30th July, 2009 and congratulated him on his second term as Communications Minister. The following issues were discussed:

1. Development and growth of BSNL:- Union leaders pointed out the declining position of market share of BSNL and the problems in tender process which resulted in lack of mobile lines for providing connections to public. Minister stated that necessary action is to be taken by management.

2. 50% IDA merger for retired BSNL employees:- Unions pointed out the injustice done to the Pensioners by not issuing orders granting 50% IDA merger to BSNL retired employees. They also pointed out about the need for extending the orders on benefits of Central Govt. Pensioners to BSNL Pensioners also. Minister agreed to do the needful in the matter.

3. Declaring 14th April, Birthday of Dr. Ambedkar, as Holiday:- The Minister agreed to take up the matter with government.

[31.07.2009]A letter to Hon'ble Minister for Communications and IT - Long pending issues of BSNL Pensioners <>

[30.07.2009]United Forum Circular dated 28.07.2009 - 48 hours strike on 19 - 20 August, 2009<>

[30.07.2009]National Council decisions - BSNLEU protests improper minutes <>

[30.07.2009]Minutes of the 21st meeting of the National Council held on 23rd June, 2009 under the chairmanship of Director (HR), BSNL Board <>

[30.07.2009]143 members desert NFTE and FNTO and join BSNLEU in Jharkhand

80 members have deserted NFTE & FNTO and have joined BSNLEU at Ranchi. Similarly, Com. Raj Narayan Singh Yadav, District President, NFTE-BSNL along with 63 members of NFTE & FNTO have joined BSNLEU at Jamshedpur. CHQ greets and welcomes the Comrades who have chosen the right path. CHQ also congratulates our leaders of Ranchi, Jamshedpur District Unions as well as Jharkhand Circle Union.

[30.07.2009]1946 P&T Strike :- CHQ BSNLEU remembers the valiant P&T Workers who went on Indefinite strike in July 1946 against the British Imperialism. Thousands of workers and common people organised rallies in Madras and Kolkatta in support of the strike. All the political parties supported and congratulated the P&T workers for their heroic strike action.

[29.07.2009]General Secretary, BSNLEU letter to Shri P. Perumal, GS, PEWA <>

[28.07.2009]United Forum decides to go on 48 hours strike<>

[27.07.2009]BSNL Sports & Cultural meeting held on 27.07.2009 has taken the following decisions:

Kit allowance increased from Rs.1500 to Rs.2000 for All India
Kit allowance increased from Rs.2000 to Rs.2500 for Nationals
Sanchar krida awards increased from Rs.10000 to Rs.15000
Upto silver medal in national, cash awards are allowed for coaches
[Report from Com. John Verghese, Member Sports & Cultural Board]

[27.07.2009]General Secretary meets CMD BSNL <>

[25.07.2009]Where BSNL Stands ! <>

[24.07.2009]United Forum Meets: - Meeting of United Forum of BSNL union will be held at 1500 hours on 27th July, 2009 in the National Council Room, Eastern Court. Room No.230.

[24.07.2009]BSNL Employees Union / Joint Forum strongly oppose IPO<>

[24.07.2009]Standing Committee of National Council formed <>

[24.07.2009]Central Executive Committee at Mysore:- CEC Meeting of BSNL Employees Union will be held at Mysore from 27th to 29th August. Coms. Mohd. Amin, General Secretary, CITU, Shri Kuldeep Goyal, CMD BSNL and Shri Gopal Das, Director (HRD) and other important personalities will address.

Com. C.K. Gundanna, Circle Secretary, Karnataka and Convenor, Reception Committee, Mysore with other Comrades are putting in best efforts for making all arrangements for the Central Executive Committee.

[24.07.2009]Meeting with GM (SR)<>

[24.07.2009]Members from NFTE-BSNL & NUBSNLW (FNTO) joined BSNLEU:- 41 members from NFTE-BSNL and NUBSNLW (FNTO) joined BSNLEU in CTO, New Delhi. We welcome these new members. CHQ congratulates Com. Munshi Lal, District Secretary, BSNLEU, CTO Branch and other leaders.

[24.07.2009]Welcome Comrades!:- As per report from Com. M.K. Alam, District Secretary, Surendranagar (Gujarat), 30 Comrades have left NFTE and FNTO and joined BSNLEU. Congratulations ! Welcome to BSNLEU.

[22.07.2009] Joint Forum press release dated 22.07.2009 <>

[22.07.2009]Wage Revision: General Secretary, BSNLEU met CMD, BSNL on 22.07.2009 and requested for appointment of Chairman, Wage Negotiation Committee and demanded early settlement on pay revision. Shri S.R. Kapoor, Executive Director (Finance), is appointed as Chairman, Wage Negotiation Committee.

[22.07.2009] BSNL will be listed and 10% shares will be sold - says Secretary, DoT <>

[21.07.2009] General Secretary, BSNLEU meets Director (HRD) >

[21.07.2009] Welcome to BSNLEU:- Entire membership coming to about 125 of NFTE joined BSNLEU in CGMT office Patna under the leadership of Com. Randhir Singh Yadav, District Secretary, as per report from Com. B.P. Singh, Circle Secretary, Bihar.

Another 50 members from NFTE and FNTO have joined BSNLEU in Muzaffarpur District, Bihar.

We welcome all to BSNLEU and congratulate Com. B.P. Singh, Circle Secretary and other leaders of Bihar.

[21.07.2009] Director (HRD) replies to BSNLEU regarding complaints on GM (SR) - Shri Gopal Das, Director (HRD) DO. No. BSNL/39-1/SR/2009 dated 8th June, 2009 <>

[21.07.2009] Joint Forum Letter to CMD, BSNL - Discussion of CMD with Joint Forum Unions on 16th July 2009 – strong protest against the wrong and mischievous minutes issued <> <>

[21.07.2009] CENTRAL TRADE UNIONS OPPOSE DISINVESTMENT: - All Central Trade Unions, including INTUC, have strongly opposed the disinvestment programmes of the Central Government. A Joint Statement has been issued signed by AITUC, CITU, HMS, INTUC, AICCTU etc. opposing the anti-worker policy of the Government like price rise, job losses, disinvestment, violation of basic labour laws etc.

A National Convention will be held in New Delhi on the 14th September 2009 to chalk out common future programmes. BSNLEU welcomes this new development. See Joint Statement <

Natiomnal Council Meeting minutes-inf. by ashok Hindocha M-9426201999

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Sub: Minutes of the 21st meeting of the National Council held on 23rd June, 2009 under the chairmanship of Director (HR), BSNL Board.

The 21st meeting of National Council was held at 11:00 AM on 21st June, 2009 in the Conference Hall, Bharat Sanchar Bhavan, New Delhi. The list of participants is available in the enclosed Annexure.

2. At the outset, GM (SR) welcomed all the members of National Council, both from Official side and from Staff side in the newly constituted National Council after 4th membership verification. He mentioned that some of the staff side members are newly nominated members whereas others have been members of Staff side in the previous National Council. Thereafter at his request, all the members of National Council introduced themselves to the house.

3. In his inaugural speech, Chairman National Council welcomed Leader, Secretary and other members of Staff Side and also members from Official side in the newly formed National Council after the elections. He mentioned that we are going to have first meeting after 4th membership verification and congratulated Shri Namboodiri for winning the elections. He mentioned that under his able leadership, the management looks forward for the continued cooperation in dealing with matters of staff and their welfare. From management side, he assured continued cooperation and commitment to ensure welfare of the staff and to achieve the objectives of the company for sustained growth. Further, he mentioned that this meeting is taking place after a gap of approx. six months and during this period a lot of developments have taken place.

4. The Chairman further mentioned that the company is passing through a very critical juncture. During 2007-08, our profit was to the tune of Rs. 3000 crores and for the year 2008-09, the accounts are to be audited, but as per the initial estimates the profit is likely to come down to approx. Rs.100 crores. Our market share in mobile has declined to about 13% and now we are the 4th operator in wireless. There are certain positive things too, our market share in broadband has increased. Last year, we added about 2.5 million broadband connections as against 1.5 million during the previous year and with this our market share has increased to about 54% and no other operator is near BSNL. We have potential also in this area of business. During this year, we are going to add about 39 million wireless capacity, out of this 34 million is 2G and 5 million in 3G. Against this, about 11 million capacity in 2G and 0.5 million in 3G has already been rolled out. With the increased capacity, we are going to increase our revenue also during the current financial year. Tender for 93 million GSM lines for next three years has also been opened and it is under process. Another significant development relates to transformation of the company for which a consulting firm, M/s. BCG has been appointed for re-structuring business process of the company. With the assistance of M/s. BCG, we have identified vision, mission and goals of the company. He apprised the members that various pilot projects have been launched. These are, viz. Projects Shikhar, Vijay (Mobiles), Udan (LL&BB), Sanchay (cost cutting), Kuber (collection of outstanding revenue), Dosti (PCO) etc. launched by the company. In UP (East), Project Vijay has been very successful. These projects, if carried out, shall enhance our revenue.

5. After speaking at length about ‘vision’ and ‘mission’ of BSNL, the Chairman also spoke of the developments relating to staff matters –

• Payment of six months’ interest free salary advance
• Revision of HRA rates. This resulted in stoppage of CCA which in turn reduced the salaries of staff working in four metros. Instructions issued relating to continued payment of CCA in four metros.
• DOT issued instructions that the revised rules for pension calculation as per 6th CPC with regard to limit of DCRG, commutation table, emoluments, qualifying service, etc. is applicable to IDA pensioners of BSNL covered under Rule 37-A w.e.f. 1.1.2006. [PS : The order has since been put on hold by the Government.]
• Provision of limited access of BSNL intranet to the recognized union.
• Payment of TA/DA to the office bearers of unions and associations.
• Re-iteration of Instructions relating to reimbursement of the cost of third Coronary stent under BSNLMRS as per the procedure prevalent in CGHS
• JTO Exam 2008 has been held on 21.6.2009
• DOT has taken objection to the sending of representations by the unions and associations and the concern of DOT has been conveyed to the union on 19.3.2009. It is presumed, the unions have taken the advice of DOT in right perspective.
• Second amendment to CDA Rules.


6. While concluding his remarks, the Chairman once again extended warm welcome to the members of Staff side.

7. Executive Director (Finance) welcomed the members of the newly formed National Council, both from Staff side and management side. He mentioned that Director (HR) has already given an over-view of the company. We have plans for the coming year – restructuring and other issues. In the mobile sector, we are going to get 93 million capacity. We have to see that we get not only customers, but good customers and satisfied customers. In broadband sector, our share will further increase. Pilot projects have been launched to improve our functioning. We need to change our attitude and procedures. With these words, he once again welcomed the members of National Council.

8. Leader, Staff side welcomed the Chairman, Executive Director (Finance), members from management side, Secretary and other members from Staff Side. He extended warm welcome to all of them and mentioned that this is the first meeting after 4th membership verification. He thanked the management and the Chairman for re-constituting the National Council. Further, he mentioned that the notification relating to reconstitution of National Council has been issued only on 4th May, 2009, i.e. approx. six months after, and that too provisionally. Commenting on the constitution of National Council provisionally since some of the members are from unions other than the representative union, he mentioned that this practice is in vogue since 2002, immediately after the 1st membership verification in accordance with the understanding reached between the management and the staff side. Thereafter, similar practice was being followed after 2nd and 3rd membership verifications. As such, the management should not have any reservation on nomination of some members from unions other than the representative union. He stressed the need for a proper understanding between the management and the staff side for proper functioning of National Council. Further, he conveyed his sincere thanks to the Chairman for issuing instructions for payment of salary advance, grant of HRA at revised rates, protection of CCA in metro cities, extension of pensionary benefits to the retirees commensurate with the 6th CPC, allotment of office accommodation to National Council in the Eastern Court building. While assuring the commitment of the Staff side for betterment of the company, he mentioned that some issues are long pending and need prompt intervention of the management, viz. promotion policy, wage negotiation, pay anomaly issues, regularization of casual labourers, merger of IDA for retired employees, promotional avenues of SC/ST employees in the promotion policy by assuring constitutional safeguards, partial implementation of award etc. He stated that decisions are taken in the National Council to form Committees on certain issues of the employees and demanded that action taken reports of such committees should be submitted in every meeting of the National Council. He also referred to the part-time distance learning scheme introduced for executives and demanded that this should also be extended to non-executives. Regarding wage negotiation, he pointed out that some issues are still remaining for which successive and continued negotiations need to continue. On the functioning of the negotiating councils, the Leader, Staff side pointed out that the Rules of Business of the Councils were yet to be defined and demanded that the same should be brought in.

9. Referring to customer issues, Leader Staff side mentioned that whenever a landline connection is disconnected due to non-payment, the landline connection is restored on receipt of payment, but the customer’s broadband connection is disconnected after 2-3 days because of poor coordination since the billing cycle of fixed line and broadband are generally different. This can be avoided. On the marketing issues, he demanded that whatever schemes are extended to BSNL franchisees, the same scheme should also be available at BSNL CSCs. Finally, he mentioned that upward growth of the company is not the concern only of the management, but staff side is equally concerned and assured full cooperation of the Staff side in this regard.

10. Secretary, Staff side welcomed the Chairman, National Council, Executive Director (Finance), Leader Staff side and members both from the management side and the staff side. He mentioned that this is the 4th National Council formed after formation of BSNL. A number of issues have been discussed in the 20th meeting of National Council and also in earlier meetings. He thanked the Chairman for congratulating him for getting elected in the 4th membership verification. He mentioned that in the new scheme of things, the issues whether developmental activities or staff issues will be discussed in detail and decisions taken. He referred to the information given by the Chairman relating to developmental activities. While thanking the management for associating workers in certain forums, he mentioned that the staff side feels that the workers are not involved in deciding the policies of the company. The workers are simply informed of the policies adopted by the management and they have to implement the same. There are about 2.5 lakh non-executive employees and they gain lot of experiences in the field relating to the services offered to the customers. The workers are either completely ignored or their suggestions are not taken in proper perspective. Without claiming workers representation in the Board as in the case of banks, he stressed the need for taking the workers into confidence while formulating and implementing new schemes. In this connection, he referred to an earlier meeting of National Council in which a decision was taken for formation of Works Committees at SSA level. In about 80% of SSAs, the Works Committees are not functional. The local level management is not interested to decide the policies in consultation with the staff side. The staff side urges upon the management to associate the workers and take them into confidence while formulating the policies, it will benefit the company.

11. Referring to 3G, Secretary Staff side mentioned that licence to BSNL was given long back, but the same has not been adequately exploited so far. This needs to be expedited. As regards 93 million GSM lines, he referred to the discussions he had with the Chairman, National Council and the CMD, BSNL. On the tender issue, he suggested that we should take the help of the Government so that no private company is able to intervene and cause any type of delay. He assured full cooperation of the Staff side.

12. Further, Secretary Staff side referred to the National Council under the Government set-up, which is presided over by the Cabinet Secretary. Without complaining against the present incumbent, he demanded that the National Council in BSNL should be chaired by the CMD so that prompt decisions are taken in the meeting itself. Similarly, he demanded that the chairmanship of the Standing Committee should also be upgraded to the level of Director (HR) for accelerating the decisions taken in the National Council. In order to have 8 meetings of National Council during this recognition period of two years, he demanded that next meeting can be held after two months since five months’ time has already elapsed after the membership verification. He mentioned that the recognized union is not getting copies of the orders issued by various sections in the Corporate office. Thereafter, he thanked the Chairman for allotting accommodation to the Staff side, National Council and requested for immediate handing over of the same. With the submission of its recommendations by the Promotion Committee on non-executive promotion policy, he mentioned that some issues not connected with promotion are still pending. A new Committee should be re-constituted so that the left over issues are urgently discussed. He also referred to the Anomaly Committee and requested the implementation of the decisions taken. While assuring the cooperation of Staff side, the Secretary mentioned that he wants management’s cooperation too in settling the issues in a very effective manner. With these observations, he once again thanked the management.

13. Another Staff Side member, Shri J.N. Mishra spoke about the need for role of non-executives in the restructuring of BSNL. Only senior level officers hold meetings in the Circles and take decisions. Secondly, items for discussion in the National Council are given in advance. Timely action be taken to settle the issues instead of informing the members in the meeting that the issues are being examined / looked into.

14. On the observations made by the Staff side, GM (SR) mentioned that immediately he is in a position to react to some of the issues, viz. –

• As regards constitution of National Council, he informed that the management did have certain reservations on inclusion of large number of outside members. However, the union also has completed the formality of submitting the list of members and their acceptance letters only on 2nd April, 2009, as such the delay is only procedural and not intentional. He stated that he agreed with Staff side that the provisional status of the National Council should not continue.

• Because of complexities involved, the Anomaly Committee issues can be discussed separately.

• Promotional avenues of SC/ST employees, the issue has been thoroughly examined and discussed before submission of its report by the Promotion Committee and the recommended promotional policy includes all constitutional safeguards for SC/ST employees.

• The issue of raising the level of National Council has already been discussed and finally settlement was made at the intervention of CMD by way of increasing the number of Staff side members in the National Council.

• On the demand of the Staff side for Action Taken Report, GM (SR) assured that a mechanism will be developed to keep the National Council members informed.

15. Thereafter, the following agenda items were taken up for discussion.

15.1 Mobile connections and free calls to Non-Executives - The Staff side raised a demand that a mobile connection be provided to all non-executive employees as in the case of executives, whether operational requirement is there or not. In response, the management side informed that mobile connections are provided to the executives only for operational requirements. After discussions, the management side suggested that it may not be possible to do away with the operational requirement, however effort will be made to bring, more number of non-executives under the coverage of operational requirement.

15.2 Reactivating the Works Committees - The Staff side mentioned that the Works Committees formed at SSA level are not functioning properly, and there is no mechanism to monitor their functioning. The Staff side further suggested that similar Committees can be formed at Circle level also. After discussions, the Chairman ruled that the Circles can be again advised to ensure proper functioning of the Works Committees and the instructions already issued shall be re-iterated. However, he pointed out that it may not be advisable to venture new areas and form these Committees at Circle level.

15.3 Non-settlement of pay anomalies - The staff side mentioned that an agreement was reached between the staff side and the management on the ways and means to settle the pay anomalies and aberrations which arose out of the wage settlement of 2002. However, since DOT has returned the file, BSNL should decide the cases immediately. In response to the demand of Staff Side, the management side pointed out that they couldn’t find any representative case. Further, the management side also pointed out that one of the types of aberrations was between pay of Group ‘D’ employees, who had passed the first screening test for Telecom Mechanic and were placed in the Lineman’s pay scale (which was subsequently upgraded) and those who passed the second screening test and were placed in the CDA pay scale of Rs.2750-4400/-. If the aberration is corrected by promoting employees passed in the first test to opt for lower pay scale, newer aberration will be created by application of non-executive promotion policy, which provides placement in higher pay scale after completion of residency period in a particular pay scale. Hence, the management side proposed a discussion in a separate meeting, preferably in the first week of July, 2009, to which the Staff side agreed to and also agreed to give representative cases..


15.4 Inordinate delay in the implementation of Promotion Policy for the Non-Executives - The Staff side mentioned that an agreement was signed on the promotion policy of non-executives on 30.10.2008, but the orders implementing the same have not been issued so far and requested that immediate action is required to have the policy implemented. Responding to the demand of Staff side, the management side informed that orders will be issued immediately on receipt of DOT’s concurrence. Thereafter, the Staff side requested that the draft orders be shown to them before issue.

15.5 Refund of the CPF contribution, recovered for the past period - The Staff side pointed out that BSNL ordered recovery of CPF contribution at 12% of basic pay plus lDA from the BSNL recruitees vide its dated 12.08.2005 and the recovery has been effected for the past period also. Central PF Commissioner has informed that such recovery was against the provisions of the EPF scheme and had also directed to refund such contribution amount to the employees. Hence, the refund may be made without further delay. Reacting to the demand of Staff side, the management side informed that recovery of employees’ contribution on salary exceeding Rs.6500/- does not fall under violation of Para 32 of EPF scheme and the PF Commissioner has also been informed on 14.5.2009. Moreover, in a similar case, a WP has been filed in the Hon’ble High Court in Madhya Pradesh against the order issued by the Asstt. Provident Fund Commissioner, and the Hon’ble High Court has stayed the decision of APFC, Bhopal.

15.6 Provision of Internal Quota in the Recruitment Rules for cadre of Executive (Marketing & Sales) and Executive (HR) - Referring to RRs for Executives (Marketing & Sales) and HR and the BSNL management’s decision to recruit 400 Executives, the Staff side raised a demand for 50% quota for internal candidates as in the case of Management Trainees. In response to the demand, the management side informed that the proposal to recruit Executives, both in Marketing & Sales and HR, has been dropped for the present.

15.7 Allotment of vacant staff quarters on Lease ownership basis - The Staff side pointed out that a large number of quarters are lying vacant at Mumbai, in the P&T colonies in Sahar, Santa Cruz, Mulund, Mahim etc. and only 1/3 of the quarters in these colonies are occupied. The condition of the unoccupied quarters is in a poor shape. Similarly, lands belonging to BSNL in areas like Juhu Danda, Borivali etc have been encroached by outsiders. Accordingly, the Staff side proposed that the vacant quarters may be allotted to the employees and BSNL retirees preferably on Lease ownership basis. In response, the management side informed that the Management Committee of BSNL Board has approved the Policy of Utilisation of Vacant Staff Quarters and giving the quarters to other Corporations/Government employees. There is no provision in the policy for allotment of vacant staff quarters on lease/ownership basis to the BSNL retirees and the same cannot be agreed to. Regarding encroachment of land at Juhu Danda & Borivali, CGM Maharashtra Circle has been requested to get the encroachments removed and take action regarding proper utilisation of the land.

15.8 Conversion of JAO Part II competitive examination into a qualifying examination - The Staff side mentioned that in the past JAO Part II examination was a qualifying one and subsequently the same has been converted into a competitive examination. In order to fill up the large number of vacancies lying vacant, the Staff side requested to re-convert this into a qualifying one and to conduct the exam without further delay. Responding to the request of Staff side, it was informed from the management side that in DOT when JAO cadre was having all-India service liability, the exam was qualifying in nature but after formation of BSNL, when JAO was made a Circle cadre, the mode of recruitment was changed to (i) 50% by DR from open market (ii) 40% by internal examination, and (iii) 10% of the vacant posts by internal competitive exam only from Sr. Accountant / Jr. Accountants. As regards conduct of exam, recruitment against all the three modes, i.e. 50% quota, 40% quota and 10% quota is going to be held shortly for which instructions are being issued to DE Section. Hence, the management side concluded that it may not be feasible to make JAO Part-II exam as a qualifying exam.

15.9 Conducting of JTO, TTA examinations under LDCE quota - The Staff side pointed out that JTO, TTA examinations for the Internal Candidates have not taken place for years together under one pretext or the other. This is affecting the promotional prospects of the existing employees and requested that these examinations be held without further delay. In response to the demand of Staff side, it was informed by the management side that some of the successful candidates of the previous supplementary LDCE, 2004 for TTA have filed an SLP in the Supreme Court against the judgement of Madras High Court’s order for conducting supplementary exam. However, the possibility of holding the exam has been examined in consultation with Legal Cell and decided to hold TTA examination in places where Court case is not there, subject to outcome of SLP. As regards JTO, process has already been started for conducting LDCE for promotion to JTO cadre under both 15% quota and 35% quota. The scheme and syllabus for LDCE is being finalized by a Committee constituted for the purpose.

15.10 Conducting of Telecom. Mechanic LDCE examination - The Staff side argued that in a number of circles, since the Telecom Mechanic posts are lying vacant under LDCE quota, LDCE exam may be conducted without further delay. In response, the management side informed that notification for conduct of the exam in such of SSAs where vacancies exist will be issued within one month.

15.11 Reduction of service condition to appear for 35% quota in the LDCE promotion to JTO - The Staff side mentioned that to appear for the JTO LDCE, 10 years’ qualifying service is prescribed under the RRs. Normally, the qualifying service under LDCE is less than the service required for promotion in the normal course. In order to rectify the position, the Staff side demanded that RRs be suitably modified. Management side informed that promotion is only by way of LDCE and not in the normal course. Moreover, this issue has earlier been taken up by the Staff side and a proposal for reduction in eligibility condition to 7 years was placed before the Management Committee, but the same was rejected. However, in case the Staff side provides further inputs, the case can again be examined.

15.12 Closure of DTOs at Mumbai and Delhi - The Staff side referred to the decision of Management to close down ten DTOs in Mumbai city and demanded that these DTOs may be converted into Customer Service Centres, utilizing the existing staff of these DTOs. Even though BSNL is not providing services in Mumbai city, a large number of BSNL customers come to Mumbai every day, from various parts of Maharashtra circle. The Staff side requested for similar action in Delhi also. In response to the demand, the management side informed that due to new technological developments such as use of SMS, E-mail etc., the telegraph traffic has substantially declined. The daily average telegraph traffic of each closed Telegraph Office in Mumbai and Delhi was below 10 telegrams per day resulting in huge financial loss of about Rs. 40 lacs per annum per Telegraph Office. As regards converting these telegraph offices into customer service centres, the management side informed that due to non-provisioning of services by BSNL in Delhi and Mumbai, there is practically no sale of BSNL products in these two cities. In NTR New Delhi, the total revenue in the month of April, 09, for recharge of C-top up from all the telegraph offices put together is only one thousand while the expenditure is exorbitantly high. Therefore, conversion of these telegraph offices into Customer Service Centres is not justified.

15.13 Review of the guidelines for compassionate Ground Appointments - The Staff side referred to BSNL’s instructions on Compassionate Ground Appointments, under which "Weightage Point System" has been introduced to assess the indigent condition of the family of the deceased employees, and mentioned that that this Weightage Point System, in practice, is creating hardship to the deserving families. Accordingly, the Staff Side demanded review of these guidelines. Reacting to the demand of Staff side, the management side informed that weightage Point System has been introduced only after its approval by the Management Committee of BSNL with a view that deserving cases may get appointment on compassionate grounds. The management side further argued that with the reduction of fixed lines for the last five years, the number of posts as well as number of vacancies for CGA are drastically reduced, as a result of which review of these guidelines may not yield fruitful results. To overcome the present situation, the management side suggested the staff side to ponder over the issue and come forward with any alternate proposal.

15.14 Acute delay on the clearance of CGA cases by BSNL Corporate Office - The Staff side complained that Compassionate Ground Appointments referred to the BSNL Corporate Office for approval by the Circles are considerably delayed. Moreover, in certain cases where the Circle office refers the CGA case to Corporate office with its recommendation is rejected. Considering the extreme difficulties being experienced by the families of the deceased employees, the Staff side requested that a special drive may be launched to clear the back log. In response to the complaint of Staff side, the management side clarified that after issuance of the guidelines in June 2007 w.r.t weightage point system, approx. 1920 cases have been received by Corporate office for consideration, out of which 765 cases have already been decided. Additional information from circles has been asked in nearly 300 cases. Special efforts will be taken to expedite the cases in next six months.

15.15 Delay in the full fledged launching of BSNL's 3G service - The Staff side mentioned that even though BSNL has got the 3G Spectrum much ahead of the Private players, yet BSNL has to launch the service in a full fledged manner throughout the country. As such, BSNL has to take steps on war-footing for launching full pledged 3G mobile service throughout the country to capture the market early. In this regard, the Chairman remarked that the issue has been adequately discussed in his opening address and special mechanism to focus on sales and marketing of 3G services has been prescribed.

15.16 Allotment of 10% Posts of JAOs to Senior Accountants on seniority cum fitness - The Staff side submitted that by virtue of their knowledge gained and possessed, Sr. Accountants already officiating as JAO may be promoted to the post of JAO on seniority-cum-fitness basis. The Staff side further submitted that with the conversion of Telecom Accounts cadres to Sr. TOA pattern, the cadres of Sr. / Jr. Accountants have been declared as wasting cadres and some of the Sr. Accountants even after putting in 22 years’ of service, are yet to be promoted. In response to the demand of Staff side, it was informed from the management side that 10% of the vacant posts in the grade of JAO have been exclusively reserved for Sr./Jr. Accountants, their zone of competition is also very restricted and they are not required to compete with all the departmental candidates which gives them a good chance of success. Thereafter, the Staff side requested for one time relaxation so as to enable Sr. Accountants with long service to get their long over-due promotion, the Chairman ruled that no relaxation can be given. Moreover, exam is going to be conducted and let them appear in the exam and qualify the same.

15.17 Increase in the quantum of OTA Rates - The Staff side mentioned that the OTA rates were fixed during 90s and are still continuing even after switching over by the officials to lDA Scale. The hourly rate fixed was based on CDA scale that was in operation at that time. Accordingly, the Staff side requested that the hourly rate of OTA both for normal day and holiday may be revised in consonance with the lDA scale operative from 1.10.2000. Reacting to the demand of Staff side, the management side informed that although the Fifth Pay Commission had recommended discontinuance of OTA except for Staff Car Drivers, Operational Staff and Industrial employees, but status-quo continued in BSNL. Hence, it will continue to be regulated at the existing rates (i.e. in the pre-revised scale) of admissibility. Therefore, the demand of the union cannot be agreed to.

15.18 Increase the age limit for selection as a faculty member - The Staff side mentioned that the age limit for selection as a member of faculty was fixed at 52 when the retirement age was 58 years. With the increase in retirement age to 60 years, the age limit for selection as a faculty member be also raised to 55 years. In response to the demand, the Management side informed that the age limit has already been enhanced to 55 years. Thereafter, the Staff side made a request for a copy of the relevant orders, to which GM (Trg.) readily agreed to.

15.19 TTA Exam - Conducting of pre-qualification test for the non plus two candidates - The Staff side demanded that in the revised scheme of LDCE for TTA under 40% quota, a provision be made for conduct of pre-qualification test for those candidates who do not possess plus two qualification and who wish to appear in the 40% LDCE for TTA, as has been done in the past. In response to the demand of Staff side, it was informed that any relaxation in the RRs gives rise to disputes in future. Further, when sufficient number of candidates with + 2 qualification are available, then no justification exists for providing relaxation. After prolonged discussions, finally the Management side agreed to take legal advice and in the light of legal advice would decide the conduct of pre-qualifying test, as a one time measure, for the forthcoming LDCE.

15.20 Declare holiday on 14th April of every year, on account of Ambedkar Jayanthi - The Staff side made a mention that 14th April is the birth anniversary of Bharat Ratna Dr. B.R. Ambedkar and it is being observed throughout the country. Since his birth anniversary is being observed as restricted holiday in BSNL, the Staff side requested that BSNL may declare 14th April of every year as holiday on account of Ambedkar Jayanthi. In response to the demand of Staff side, it was informed that whenever a holiday is declared by DoP&Trg, the same is also declared by BSNL for its offices. After much insistence by the Staff side, the management side agreed to refer the issue to the DOT.


16. The meeting ended with a vote of thanks to the Chair.













Annexure


List of Members who participated in the 21st meeting of National Council
held on 23rd June, 2009


Management Side:

1. Director (HR) - Chairman
2. ED (Finance)
3. GM (Estt.)
4. GM (Pers.)
5. GM (Admn.)
6. GM (Training)
7. GM (EF)
8. GM (CA)
9. GM (FP)
10. GM (SR)
11. DGM (SR)
12. AGM (SR-II).

Union Side:

1. Shri R. Venkataraman - Leader, Staff Side
2. Shri V.A.N. Namboodiri - Secretary, Staff Side
3. Shri P. Abhimanyu
4. Shri J.N. Mishra
5. Shri V. Subburaman
6. Shri A.D. Patil
7. Shri Suresh Kumar
8. Shri K. Mohanan
9. Shri P.V. Sivasankaran
10. Shri V. Narayana
11. Shri B.R. Jakhatia
12. Shri Dharmendra Verma
13. Shri Dhiraj Chaudhary
14. Shri Hari Singh
15. Shri Babu Singh.


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Thursday, July 30, 2009

Wage Revision-an Iternational aspect-imp. inf. by ashok hindocha M-9426201999

www.bsnlnewsbyashokhindocha.blogspot.com M-9426201999



Wage hikes larger in independent union plants
www.bsnlnewsbyashokhindocha.blogspot.com

A study of 6,561 plants nationwide has shown that ones having independent labor unions saw larger wage growth than plants with workers affiliated with the two existing umbrella unions

The study, conducted by the JoongAng Ilbo and the Labor Ministry, also showed fewer cases of labor-management disputes in factories with independent unions.

The wage growth rate in workplaces with independent laborers was between 5.2 and 6.8 percent during a three-year period. Unionized workers under the Federation of Korean Trade Unions saw the rate of growth decrease from 4.5 to 3.9 percent while unionists affiliated to the Korean Confederation of Trade Unions saw a rate growth of 4.5 to 4.7 percent. In the first half of this year, wage growth in workplaces with no unionized laborers was 2 percent. Wage growth for unionists under the FKTU, independent workers and members under KCTU were 0.9, 0.8 and 0.5 percent, respectively.

¡°The reason why the rate for plants with independent laborers placed third this year is that those workers had voluntarily either frozen or cut wages,¡± said Kwon Hyuk-tae, a head of the Labor-Management Conflict Handling Division at Labor Ministry. ¡°The wage growth rate for independent workers is likely to surpass that of workers under FKTU when laborers of independent unions receive incentives by the end of this year.¡±

The study shows that plants under the KCTU witnessed over 100 labor-management disputes yearly since 2007. So far this year, there have been 38 disputes. Only two cases of labor disputes within factories with independent unionists occurred in 2007 and there were none last year. This year has seen one case. ¡°When we were under the KCTU until last March, we were ordered to stage strikes for the sake of the group¡¯s interest,¡± said Kim Ju-seok, head of a labor union at Ulsan NCC, a petrochemical product-making company. ¡°The KCTU did not consider issues within our firm.¡±

Unionized workers of Simpac ANC, a ferro-alloy maker, in Pohang, North Gyeongsang, staged strikes demanding the end of layoffs from 1998 to 2005 when the company was under bankruptcy protection. From time to time, Simpac unionized workers were either mobilized to support KCTU¡¯s political activities or that of other labor unions.

However, each Simpac worker received incentives worth 10 million won ($8,090) and company shares at the end of last year due to increased profits since unionists withdrew from the KCTU in January of last year. It was the first incentive in 10 years. Nam Ho-ki, 48, who has worked at the firm for 22 years, said workers once received nothing despite past profits. He said employees now believe there will be compensation if they work hard.

¡°While the company suffered from a deficit in the first half of this year due to the economic downturn, unionized workers first suggested a wage freeze,¡± said Choi Jin-shik, chairman of Simpac. ¡°The firm will do its upmost to run the business successfully so that management can offer workers incentives by the end of this year.¡±

Some said that changing characteristics of labor-management relations in Simpac are largely influenced by its labor union¡¯s withdrawal of membership from the KCTU. All the unionists voted in favor of the withdrawal.

The operation rate at Simpac was at 50 percent or lower before its union left the KCTU. It increased to 99 percent by the end of last year. The company was able to offer incentives to employees since the profits increased.

¡°The reason why wage growth is high among plants with either independent or no unions is that the more labor and management cooperate, the more profits they earn,¡± said Kim Dong-one, a business professor of Korea University in Seongbuk, Seoul.

By Kim Ki-chan, Chang Chung-hoon [smartpower@joongang.co.kr]
www.bsnlnewsbyashokhindocha.blogspot.com

The 21 things White House staff can't tell Obama
www.bsnlnewsbyashokhindocha.blogspot.com
Washington: Telling Barack Obama that "Hillary Clinton called" might land one in trouble, for this is one of the 21 things that the White House staff is barred from saying to the U.S. President.


According to the Politico, a list of 21 things the staff were not allowed to say to the President was circulated in the White House.


The 21 Things You Cannot Say to the President after a News Conference are:


1. Hey, we hear the Golf Channel is going to carry it next time. Well, actually, only the Golf Channel is going to carry it next time.


2. Don't worry. We'll get 'em next year.


3. Professor Gates called. He can't find his house keys.


4. You want to take a mulligan on this one?


5. We did try to plant a question about Bo, but nobody would go for it.



Quantum leap: PM to launch N-submarine on Sunday
India remembers valiant Kargil heroes on victory anniversary
Kargil hilltops lit up as India salutes war heroes
Bangladesh decides to preserve Jyoti Basu's ancestral house
25% of over the counter medicinal drugs may be spurious
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Tuesday, July 28, 2009





www.bsnlnewsbyashokhindocha.blogspot.com
[27.07.2009]United Forum decides to go on 48 hours strike<>www.bsnleuchq.com

[27.07.2009]BSNL Sports & Cultural meeting held on 27.07.2009 has taken the following decisions:

Kit allowance increased from Rs.1500 to Rs.2000 for All India
Kit allowance increased from Rs.2000 to Rs.2500 for Nationals
Sanchar krida awards increased from Rs.10000 to Rs.15000
Upto silver medal in national, cash awards are allowed for coaches
[Report from Com. John Verghese, Member Sports & Cultural Board]

[27.07.2009]General Secretary meets CMD BSNL <>

[25.07.2009]Where BSNL Stands ! <>

[24.07.2009]United Forum Meets: - Meeting of United Forum of BSNL union will be held at 1500 hours on 27th July, 2009 in the National Council Room, Eastern Court. Room No.230.

[24.07.2009]BSNL Employees Union / Joint Forum strongly oppose IPO<>

[24.07.2009]Standing Committee of National Council formed <>

[24.07.2009]Central Executive Committee at Mysore:- CEC Meeting of BSNL Employees Union will be held at Mysore from 27th to 29th August. Coms. Mohd. Amin, General Secretary, CITU, Shri Kuldeep Goyal, CMD BSNL and Shri Gopal Das, Director (HRD) and other important personalities will address.

Com. C.K. Gundanna, Circle Secretary, Karnataka and Convenor, Reception Committee, Mysore with other Comrades are putting in best efforts for making all arrangements for the Central Executive Committee.

[24.07.2009]Meeting with GM (SR)<>

[24.07.2009]Members from NFTE-BSNL & NUBSNLW (FNTO) joined BSNLEU:- 41 members from NFTE-BSNL and NUBSNLW (FNTO) joined BSNLEU in CTO, New Delhi. We welcome these new members. CHQ congratulates Com. Munshi Lal, District Secretary, BSNLEU, CTO Branch and other leaders.

[24.07.2009]Welcome Comrades!:- As per report from Com. M.K. Alam, District Secretary, Surendranagar (Gujarat), 30 Comrades have left NFTE and FNTO and joined BSNLEU. Congratulations ! Welcome to BSNLEU.

[22.07.2009] Joint Forum press release dated 22.07.2009 <>

Monday, July 27, 2009

3G & Blackberry Srervice in BSNL-imp. Inf. by ashok Hindocha

www.bsnlnewsbyashokhindocha.blogspot.com M-9426201999




www.bsnlnewsbyashokhindocha.blogspot.com
M-9426201999
www.bsnl.co.in
FAQs on “On Demand” Video/ Movies/ Full Track Music/ Gaming Services and BSNL

WAP Portal ‘BSNL Live'
Question 1 . What is WAP?

WAP (Wireless Application Protocol) is the mobile internet surfing counterpart of ‘http'. A WAP browser provides all of the basic services of a computer based web browser but simplified to operate within the restrictions of a mobile phone, such as its smaller view screen.



Question 2 . What is WAP Portal?

It is a portal which works on WAP and has all the functionality and utility of a web site. The only difference is that it is available on Mobile phones. In simple words you can understand it as a web site whose appearance is customized to make it appear good to the mobile users and fit into the small mobile screen.



Question 3 . What is BSNL Live?

‘BSNL Live' is a WAP Portal which offers one stop shop for all your I nformation, E ntertainment, and C ommunication related requirements. Through ‘BSNL Live' you can access on demand Videos clips for various categories like Bolloywood, Astrology, recipes/ cookery, entertainment, cricket, comics/ animation, Movies and Movie trailers, Music, Multimedia games and wallpapers, and different tones/tunes etc. It enables you to get many Value Added Services in much simpler and friendly way. Visit WAP site ‘BSNL Live' from your mobile phone to experience the thrill.



Question 4 . What are the services which I can look for in BSNL Live ?

It provides you a variety of services to suit your every day mood. To name a few following services are on offer.

• Movies : Movies will be streamed on demand i.e. the content will be played in real time on your mobile from ‘BSNL Live' directly without first getting stored.

• Videos: Video clips of 3-5 minutes (approx.) on an average are available on demand. You can choose videos and download from the available huge library of content at ‘BSNL Live'. The categories of content varies from astrology, recipes/ cookery, entertainment, cricket to beauty tips/ clips, comics/ animation, Movies and Movie trailers, Music, Multimedia games and wallpapers, and other different tones/tunes . In addition to above more and more categories of video clips will be added to suit every taste and choice.

• Music - Full track song download: You can download full track audio songs (mp3) of your choice through ‘BSNL Live'.

• Games : Various Categories of Games viz . Regular (Simple & premium) and multiplayer branded games are available. You will be able to see only games which are compatible with your handsets. Thus you need not to worry about compatibility of games. At the time of download he will be required to pay charges of games.

Access to above services is recommended for 3G Subscribers for better experience but other content viz . Wallpapers, Themes, Screen savers, Ring-tones etc. can be used / downloaded by all the GSM subscribers.



Question 5 . How can I access BSNL Live ?

Before you access the ‘BSNL Live' you need to have correct settings in your mobile. You may get these settings in following ways:

• All the settings required to access ‘BSNL Live' & avail different services on ‘BSNL Live' will be pushed to your handset by BSNL.

• You can also ask for the settings by sending space of your handset to 58355 by SMS e.g. space to 58355 . After you send the SMS you will in response get several settings on your handset viz. ‘bsnllive', ‘bsnlstream' etc.

• You may also call BSNL Customer Care Center to know the settings.

Once you get all the settings, you have to save all of them. Out of these several settings the one pertaining to ‘BSNL Live' (will appear as ‘bsnllive') should be saved as default . In some handsets the word 'Bookmark' is used instead of default. Thereafter whenever you want to access ‘BSNL Live' you click on your Web browser in your mobile; the ‘BSNL Live' bookmark will be visible to you and clicking on it will lead you to the Welcome page. Settings for movie streaming (will appear as ‘bsnlstream') may also be saved in your mobile.



Question 6 . Do all handsets support BSNL Live ?

Any handset with WAP browsing capability can be used to access ‘BSNL Live'.



Question 7 . Can I use any phone handset to use BSNL live service ?

Yes, if your handset is GPRS capable and activated for GPRS service. However only the services compatible to your handset will be visible to you.



Question 8 . Do I need to have a 3G connection for accessing BSNL Live and availing services like Video on Demand, Video streaming, Games, Full track download ?

‘BSNL Live' can be accessed by all GSM (2.5 G and 3G) subscribers. However the videos, movies and full track songs and multiplayer games are heavy on data and to access these services you need to have a 3G connection otherwise your experience will be greatly reduced and the downloads for audio and video clips will take longer time.



Question 9 . What is the meaning of Video on Demand and how I will be charged for the video I choose ?

Video on Demand service provides you a choice of downloading video clips out of hundreds of videos available on ‘BSNL Live'. The price of individual Video will be based on its type and it may vary from one video to another. The price of individual videos ranges from Rs.5/- to Rs. 20/- while the full length movie price is Rs. 40/-.

For each video the price will be displayed to you when you click on it to purchase for download. You will have to agree to the price of the video before the video download begins. But the deduction from your account will happen only after a successful download.



Question 10 . What is Welcome Screen and Main Menu ?

This is home page of ‘BSNL Live' which is as below:





Question 11 . How can I use these services/how can I download a song, video or wallpaper ?

Process for downloading is common for all categories of content and self explanatory on ‘BSNL Live'. For your reference it has been explained here pictorially for videos:

• It is the home page view; now click on the link you wish to explore. In this case videos.

• The above click opens the category view within Videos. Based on your interest you can explore further. For example you move to Bollywood videos category.

• This list gives you various contents grouped under the Bollywood video section. You need to chose one video out of many.

• Once you click on a video it opens to a dedicated page to the selected content. You click on the Buy tab.

• ‘Clicking' on to the ‘buy' Tab, the price of the content is displayed. By clicking on the download link you finally give your consent to buy the content and content download starts. Once the download is complete the amount is deducted.



Figures are in the following page:





Question 12 . From where I can get the list of Games & Music available for download ?

Once you reach the ‘BSNL Live' Welcome WAP page you will find category for Music and Games. Clicking on any one of these will provide you with the list of games or music which are compatible with your handset and is available for download.



Question 13 . What is a video/movie streaming? How it is different from video clips download ?

Streaming video/movie is content sent in compressed form over the Internet in a continuous stream and displayed to you on your mobile device in real time without getting stored in your mobile. The streaming content (Movie) can be viewed in a fixed time window i.e. whenever it is being streamed; whereas a downloaded video can be viewed at any point of time after download and any number of times. For a streaming movie you have to remain connected to the network during the playtime of the movie. Streaming is good to view large video files as the same can not be stored on the available limited memory of mobile. In case of streaming the content charges shall be deducted at the start of streaming.



Question 14 . Do I need to view the full movie at a stretch or I am allowed to take breaks ?

The movies are streaming content; which is not allowed to be downloaded. For your convenience BSNL splits the movies in suitable 2-6 parts of 20-30 minutes each. You can view one part at a time by clicking on each part of movie one by one. However you should finish viewing all the part of the movie in specified allotted time which is 48 hours at present. The charges of the movie will be deducted only once, at the start of first part. It is not necessary to watch the parts sequentially. These parts can be viewed randomly and also repeatedly many times in the allotted time.



Question 15 . What are the advantages of using BSNL Live?

You can get all type of contents from ‘BSNL Live' be it video or tone/tunes etc.



Question 16 . Whether it is available on post paid or prepaid ?

The service is available to all GSM (2.5 G & 3G) subscribers of BSNL whether Postpaid or prepaid.



Question 17 . What if a call or a SMS comes during a download from BSNL Live ?



When a call or an SMS comes during the download/streaming following happens

• In case of Streaming

• 2G subscriber – Session breaks. Subscriber will have to start the streaming from beginning

• 3G subscriber – Streaming pauses and resumes after the call/SMS

• In case of Video on demand

• 2G subscriber – Download pauses and resumes after the call/SMS

• 3G subscriber - Download pauses and resumes after the call/SMS



Question 18. What if my GPRS connectivity breaks at any point while running BSNL Live services ?

If the GPRS connectivity breaks at anytime during executing any operation then appropriate error message of ‘Network Connection Failed' will be shown and you will be prompted to ‘Try again'.



Question 19. What if my phone gets switched off or I move out of the network area or I move from 3G area to 2.5 G area during download from BSNL Live ?

Until you have a successful download no money is deducted from your account. In such a situation when you come back into the network area, you can retry for your content. If you move from 3G area to 2.5G area the download speed will reduce to the speed of 2.5 G network. Download/ streaming continuity is defined in Question no. 17. In case of partial download/streaming the surfing/download charges shall be applicable.



Question 20. I have downloaded a song/video/wallpaper but I am not able to find it in my mobile or it is not opening ?

For all such problems please contact BSNL Customer Care Center . The call centre staff will find the solution for your problem in a minimum possible time.



Question 21. What happens if I lose my phone or if I change my mobile handset/device ?

You can start using the services as soon as you buy your new handset, new SIM and your handset is configured for GPRS & ‘BSNL Live'.



Question 22. What are the charges for services at BSNL Live ?

Whenever you want to buy any content the price of that content will be displayed informing you about the same before you buy the content. The surfing/download charges for the content will be separate and as per your data plan.



Question 23. Are there any charges for surfing on BSNL Live ?

Yes, the data surfing/download charges will be as per your subscribed data plan.



Question 24. Can I use the BSNL Live in roaming ?

Yes you can use ‘BSNL Live' in roaming wherever you have a 3G or a GPRS network.



Question 25. How can I unsubscribe any or all of the services using ‘BSNL Live' ?

You can view all of your subscriptions through ‘MyPage' option on ‘BSNL Live'. To unsubscribe any Value Added Service you will have to click on the individual subscribed service and choose ‘unsubscribe' option.



Question 26. Is it a must to have 3G connection to avail the services mentioned above ?

3G Connection is advisable to experience Video on Demand, Movie streaming, Full track song download and multiplayer games as 3G will help in better browsing and better user experience. Hence don't wait now and migrate to 3G.



Question 27. Will I face any problem of settings in case I want to go for any of the services ?

There are no settings required for these services. You just need to subscribe to GPRS/3G Service and ensure appropriate GPRS/3G settings on handset.



Question 28. What are the handsets which support the BSNL Live Services ?

The handset should be capable for WAP, GPRS. For video the handset should have support for some video protocols like RTP and inbuilt real player. Some of the services (videos/ Games etc.) will not be visible to you if your handset is not capable of supporting these services. Only those services which are supported by your handset will be visible to you from ‘BSNL Live'.

www.bsnlnewsbyashokhindocha.blogspot.com m-9426201999

3G new service in BSNL-inf. by Ashok Hindocha

www.bsnlnewsbyashokhindocha.blogspot.com M-9426201999




www.bsnlnewsbyashokhindocha.blogspot.com
M-9426201999
www.bsnl.co.in
FAQs on “On Demand” Video/ Movies/ Full Track Music/ Gaming Services and BSNL

WAP Portal ‘BSNL Live'
Question 1 . What is WAP?

WAP (Wireless Application Protocol) is the mobile internet surfing counterpart of ‘http'. A WAP browser provides all of the basic services of a computer based web browser but simplified to operate within the restrictions of a mobile phone, such as its smaller view screen.



Question 2 . What is WAP Portal?

It is a portal which works on WAP and has all the functionality and utility of a web site. The only difference is that it is available on Mobile phones. In simple words you can understand it as a web site whose appearance is customized to make it appear good to the mobile users and fit into the small mobile screen.



Question 3 . What is BSNL Live?

‘BSNL Live' is a WAP Portal which offers one stop shop for all your I nformation, E ntertainment, and C ommunication related requirements. Through ‘BSNL Live' you can access on demand Videos clips for various categories like Bolloywood, Astrology, recipes/ cookery, entertainment, cricket, comics/ animation, Movies and Movie trailers, Music, Multimedia games and wallpapers, and different tones/tunes etc. It enables you to get many Value Added Services in much simpler and friendly way. Visit WAP site ‘BSNL Live' from your mobile phone to experience the thrill.



Question 4 . What are the services which I can look for in BSNL Live ?

It provides you a variety of services to suit your every day mood. To name a few following services are on offer.

• Movies : Movies will be streamed on demand i.e. the content will be played in real time on your mobile from ‘BSNL Live' directly without first getting stored.

• Videos: Video clips of 3-5 minutes (approx.) on an average are available on demand. You can choose videos and download from the available huge library of content at ‘BSNL Live'. The categories of content varies from astrology, recipes/ cookery, entertainment, cricket to beauty tips/ clips, comics/ animation, Movies and Movie trailers, Music, Multimedia games and wallpapers, and other different tones/tunes . In addition to above more and more categories of video clips will be added to suit every taste and choice.

• Music - Full track song download: You can download full track audio songs (mp3) of your choice through ‘BSNL Live'.

• Games : Various Categories of Games viz . Regular (Simple & premium) and multiplayer branded games are available. You will be able to see only games which are compatible with your handsets. Thus you need not to worry about compatibility of games. At the time of download he will be required to pay charges of games.

Access to above services is recommended for 3G Subscribers for better experience but other content viz . Wallpapers, Themes, Screen savers, Ring-tones etc. can be used / downloaded by all the GSM subscribers.



Question 5 . How can I access BSNL Live ?

Before you access the ‘BSNL Live' you need to have correct settings in your mobile. You may get these settings in following ways:

• All the settings required to access ‘BSNL Live' & avail different services on ‘BSNL Live' will be pushed to your handset by BSNL.

• You can also ask for the settings by sending space of your handset to 58355 by SMS e.g. space to 58355 . After you send the SMS you will in response get several settings on your handset viz. ‘bsnllive', ‘bsnlstream' etc.

• You may also call BSNL Customer Care Center to know the settings.

Once you get all the settings, you have to save all of them. Out of these several settings the one pertaining to ‘BSNL Live' (will appear as ‘bsnllive') should be saved as default . In some handsets the word 'Bookmark' is used instead of default. Thereafter whenever you want to access ‘BSNL Live' you click on your Web browser in your mobile; the ‘BSNL Live' bookmark will be visible to you and clicking on it will lead you to the Welcome page. Settings for movie streaming (will appear as ‘bsnlstream') may also be saved in your mobile.



Question 6 . Do all handsets support BSNL Live ?

Any handset with WAP browsing capability can be used to access ‘BSNL Live'.



Question 7 . Can I use any phone handset to use BSNL live service ?

Yes, if your handset is GPRS capable and activated for GPRS service. However only the services compatible to your handset will be visible to you.



Question 8 . Do I need to have a 3G connection for accessing BSNL Live and availing services like Video on Demand, Video streaming, Games, Full track download ?

‘BSNL Live' can be accessed by all GSM (2.5 G and 3G) subscribers. However the videos, movies and full track songs and multiplayer games are heavy on data and to access these services you need to have a 3G connection otherwise your experience will be greatly reduced and the downloads for audio and video clips will take longer time.



Question 9 . What is the meaning of Video on Demand and how I will be charged for the video I choose ?

Video on Demand service provides you a choice of downloading video clips out of hundreds of videos available on ‘BSNL Live'. The price of individual Video will be based on its type and it may vary from one video to another. The price of individual videos ranges from Rs.5/- to Rs. 20/- while the full length movie price is Rs. 40/-.

For each video the price will be displayed to you when you click on it to purchase for download. You will have to agree to the price of the video before the video download begins. But the deduction from your account will happen only after a successful download.



Question 10 . What is Welcome Screen and Main Menu ?

This is home page of ‘BSNL Live' which is as below:





Question 11 . How can I use these services/how can I download a song, video or wallpaper ?

Process for downloading is common for all categories of content and self explanatory on ‘BSNL Live'. For your reference it has been explained here pictorially for videos:

• It is the home page view; now click on the link you wish to explore. In this case videos.

• The above click opens the category view within Videos. Based on your interest you can explore further. For example you move to Bollywood videos category.

• This list gives you various contents grouped under the Bollywood video section. You need to chose one video out of many.

• Once you click on a video it opens to a dedicated page to the selected content. You click on the Buy tab.

• ‘Clicking' on to the ‘buy' Tab, the price of the content is displayed. By clicking on the download link you finally give your consent to buy the content and content download starts. Once the download is complete the amount is deducted.



Figures are in the following page:





Question 12 . From where I can get the list of Games & Music available for download ?

Once you reach the ‘BSNL Live' Welcome WAP page you will find category for Music and Games. Clicking on any one of these will provide you with the list of games or music which are compatible with your handset and is available for download.



Question 13 . What is a video/movie streaming? How it is different from video clips download ?

Streaming video/movie is content sent in compressed form over the Internet in a continuous stream and displayed to you on your mobile device in real time without getting stored in your mobile. The streaming content (Movie) can be viewed in a fixed time window i.e. whenever it is being streamed; whereas a downloaded video can be viewed at any point of time after download and any number of times. For a streaming movie you have to remain connected to the network during the playtime of the movie. Streaming is good to view large video files as the same can not be stored on the available limited memory of mobile. In case of streaming the content charges shall be deducted at the start of streaming.



Question 14 . Do I need to view the full movie at a stretch or I am allowed to take breaks ?

The movies are streaming content; which is not allowed to be downloaded. For your convenience BSNL splits the movies in suitable 2-6 parts of 20-30 minutes each. You can view one part at a time by clicking on each part of movie one by one. However you should finish viewing all the part of the movie in specified allotted time which is 48 hours at present. The charges of the movie will be deducted only once, at the start of first part. It is not necessary to watch the parts sequentially. These parts can be viewed randomly and also repeatedly many times in the allotted time.



Question 15 . What are the advantages of using BSNL Live?

You can get all type of contents from ‘BSNL Live' be it video or tone/tunes etc.



Question 16 . Whether it is available on post paid or prepaid ?

The service is available to all GSM (2.5 G & 3G) subscribers of BSNL whether Postpaid or prepaid.



Question 17 . What if a call or a SMS comes during a download from BSNL Live ?



When a call or an SMS comes during the download/streaming following happens

• In case of Streaming

• 2G subscriber – Session breaks. Subscriber will have to start the streaming from beginning

• 3G subscriber – Streaming pauses and resumes after the call/SMS

• In case of Video on demand

• 2G subscriber – Download pauses and resumes after the call/SMS

• 3G subscriber - Download pauses and resumes after the call/SMS



Question 18. What if my GPRS connectivity breaks at any point while running BSNL Live services ?

If the GPRS connectivity breaks at anytime during executing any operation then appropriate error message of ‘Network Connection Failed' will be shown and you will be prompted to ‘Try again'.



Question 19. What if my phone gets switched off or I move out of the network area or I move from 3G area to 2.5 G area during download from BSNL Live ?

Until you have a successful download no money is deducted from your account. In such a situation when you come back into the network area, you can retry for your content. If you move from 3G area to 2.5G area the download speed will reduce to the speed of 2.5 G network. Download/ streaming continuity is defined in Question no. 17. In case of partial download/streaming the surfing/download charges shall be applicable.



Question 20. I have downloaded a song/video/wallpaper but I am not able to find it in my mobile or it is not opening ?

For all such problems please contact BSNL Customer Care Center . The call centre staff will find the solution for your problem in a minimum possible time.



Question 21. What happens if I lose my phone or if I change my mobile handset/device ?

You can start using the services as soon as you buy your new handset, new SIM and your handset is configured for GPRS & ‘BSNL Live'.



Question 22. What are the charges for services at BSNL Live ?

Whenever you want to buy any content the price of that content will be displayed informing you about the same before you buy the content. The surfing/download charges for the content will be separate and as per your data plan.



Question 23. Are there any charges for surfing on BSNL Live ?

Yes, the data surfing/download charges will be as per your subscribed data plan.



Question 24. Can I use the BSNL Live in roaming ?

Yes you can use ‘BSNL Live' in roaming wherever you have a 3G or a GPRS network.



Question 25. How can I unsubscribe any or all of the services using ‘BSNL Live' ?

You can view all of your subscriptions through ‘MyPage' option on ‘BSNL Live'. To unsubscribe any Value Added Service you will have to click on the individual subscribed service and choose ‘unsubscribe' option.



Question 26. Is it a must to have 3G connection to avail the services mentioned above ?

3G Connection is advisable to experience Video on Demand, Movie streaming, Full track song download and multiplayer games as 3G will help in better browsing and better user experience. Hence don't wait now and migrate to 3G.



Question 27. Will I face any problem of settings in case I want to go for any of the services ?

There are no settings required for these services. You just need to subscribe to GPRS/3G Service and ensure appropriate GPRS/3G settings on handset.



Question 28. What are the handsets which support the BSNL Live Services ?

The handset should be capable for WAP, GPRS. For video the handset should have support for some video protocols like RTP and inbuilt real player. Some of the services (videos/ Games etc.) will not be visible to you if your handset is not capable of supporting these services. Only those services which are supported by your handset will be visible to you from ‘BSNL Live'.

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Cellular Subscribers as on 30th June,2009.

City/Circle Operators May'2009 Jun'2009 % Growth over previous month
Metros Delhi Bharti Airtel 5013775 5114351
Vodafone Essar 4203442 4253878
MTNL 1947107 1970065
IDEA 2326058 2336208
Aircel Ltd 239254 326658
Delhi 13729636 14001160 1.98%
Mumbai Loop Mobile 2256862 2305640
Vodafone Essar 4517438 4582141
MTNL 2313158 2327153
Bharti Airtel 2821221 2826561
IDEA 856365 940274
Aircel Limited 140627 195019
Mumbai 12905671 13176788 2.10%
Chennai Aircel Cellular Ltd 2613806 2650046
Bharti Airtel 2268110 2320577
Vodafone Essar 1606108 1626652
BSNL 1109193 1116514
Chennai 7597217 7713789 1.53%
Kolkata Bharti Airtel 2527010 2542882
Vodafone Essar 2970734 3035964
BSNL 1582600 1576106
Reliable Internet 950810 950810
Aircel Cellular Ltd 552914 585580
Kolkata 8584068 8691342 1.25%
All Metros 42816592 43583079 1.79%

A' Circle Maharashtra Vodafone Essar 5141142 5363034
IDEA 7800638 8000687
Bharti Airtel 6036123 6096530
BSNL 3619217 3630106
Aircel Limited 356
22597120 23090713 2.18%
Gujarat Vodafone Essar 8415802 8606777
IDEA 4082321 4200086
Bharti Airtel 4253725 4364229
BSNL 2396819 2409335
19148667 19580427 2.25%
A.P. IDEA 5292520 5463665
Bharti Airtel 9821762 10101627
Vodafone Essar 4257943 4416028
BSNL 3280453 3443881
Aircel Limited 157237 194176
22809915 23619377 3.55%
Karnatka Bharti Airtel 10322015 10552659
Spice Comm. 1715291 1765742
Vodafone Essar 3946252 4071322
BSNL 2462645 2549116
Aircel Limited 145026 194122
18591229 19132961 2.91%
T.N. Vodafone Essar 5550119 5702130
Aircel Limited 8654732 8953682
BSNL 3271811 3373047
Bharti Airtel 6569274 6811054
IDEA 6066 64526
24052002 24904439 3.54%
A' Circle 107198933 110327917 2.92%

B' Circle Kerala IDEA 4607373 4728033
Vodafone Essar 3370227 3474920
Bharti Airtel 2502433 2620335
BSNL 2588012 2721782
Aircel Limited 133195 187483
13201240 13732553 4.02%
Punjab Spice Comm. 2519732 2554320
Bharti Airtel 3858426 3921741
BSNL 2873503 2916589
Vodafone Essar 2303023 2348146
11554684 11740796 1.61%
Haryana IDEA 1597891 1614431
Vodafone Essar 2310951 2351449
Bharti Airtel 1280162 1288688
BSNL 1762073 1837652
6951077 7092220 2.03%
U.P.(W) IDEA 4282063 4392897
Bharti Airtel 2468395 2526960
BSNL 2496465 2523596
Vodafone Essar 4674719 4801976
Aircel Limited 78358 132879
14000000 14378308 2.70%
U.P.(E) Vodafone Essar 7176532 7459534
BSNL 5858803 5961341
Bharti Airtel 6467537 6679810
IDEA 2251382 2318149
Aircel Limited 77173 126151
21831427 22544985 3.27%
Rajasthan Vodafone Essar 5401156 5555606
Bharti Airtel 7572262 7862633
BSNL 2831732 2879862
IDEA 1288417 1337896
17093567 17635997 3.17%
M.P. IDEA 5400258 5600628
Reliance Telecom 2787438 2787438
Bharti Airtel 5001125 5166595
BSNL 2454994 2471581
Vodafone Essar 534564 613735
16178379 16639977 2.85%
W.B. & A & N Reliance Telecom 1593859 1593859
BSNL 1947089 1914782
Bharti Airtel 3886556 4041562
Vodafone Essar 5249681 5403377
Dishnet Wireless 1295658 1360315
13972843 14313895 2.44%
B' Circle 114783217 118078731 2.87%

C' Circle H.P. Bharti Airtel 991275 1031947
Reliance Telecom 755600 755600
BSNL 869908 892837
IDEA 150247 159508
Dishnet Wireless 149604 162548
Vodafone Essar 63517 70877
2980151 3073317 3.13%
Bihar Reliance Telecom 2999064 2999064
BSNL 2772670 2778715
Bharti Airtel 8159469 8494235
Dishnet Wireless 1502738 1658696
ABTL (IDEA) 1201417 1454923
Vodafone Essar 1251331 1422240
17886689 18807873 5.15%
Orissa Reliance Telecom 1426497 1426497
BSNL 1539364 1591851
Bharti Airtel 3253456 3428702
Dishnet Wireless 990903 1034508
Vodafone Essar 572757 632914
IDEA 100237 156905
7883214 8271377 4.92%
Assam Reliance Telecom 1420453 1420453
BSNL 898328 901456
Bharti Airtel 1684159 1734349
Dishnet Wireless 1880377 1897990
Vodafone Essar 231625 273162
6114942 6227410 1.84%
N.E. Reliance Telecom 467380 467380
Bharti Airtel 1005121 1025180
BSNL 718646 734809
Dishnet Wireless 1143859 1188067
Vodafone Essar 245980 273793
3580986 3689229 3.02%

J & K BSNL 842860 848971
Bharti Airtel 1785817 1814674
Dishnet Wireless 930250 950455
Vodafone Essar 85664 109943
3644591 3724043 2.18%
C' Circle 42090573 43793249 4.05%

May'2009 Jun'2009
All India 306889315 315782976 2.90%
Additions 8893661

Company wise % market share - June,2009

Sl. No. Name of Company Total Sub Figures % Market Share
1 Bharti Airtel 102367881 32.42%
2 Vodafone Essar 76449598 24.21%
3 BSNL 49073929 15.54%
4 IDEA 47088878 14.91%
5 Aircel 21798731 6.90%
6 Reliance Telecom 12401101 3.93%
8 MTNL 4297218 1.36%
9 Loop Mobile 2305640 0.73%
All India 315782976 100.00%

BSNL Latest News by ashok Hindocha M-9426201999

www.bsnlnewsbyashokhindocha.blogspot.com M-9426201999




CP&M CELL, BSNL Corporate Office,
2nd floor, Room No. 230, Eastern Court,
Janpath, New Delhi – 110001.

Tel: 91-11-23730389
Fax: 91-11-23765453
e-mail: ltp@bsnl.co.in
To
1) to 26) All Chief General Managers,
BSNL Telecom Circles/ Metro Distts.

No. 1-2 (1) /Market Share/2009-LTP Dated : 24.07.2009

Sub: Tele-density and Market Share as on 30.06.2009.

During June 2009, 11.91 million telephone connections has been provided in the country taking the total telephone connections in the country 46.48 crores as on 30th June, 2009.

The tele-density & market share of all other telecom operators is enclosed. Ranking in BSNL column has been introduced in Annexure 4, 5 & 6 in addition to showing growth during the month and year.

It is seen that:

(1) BSNL has added 5.85 lakh connections during the month of June 2009. This works out to 4.91% of the total connection added in the country during the month of June 2009.
(2) BSNL is at 2nd position as an operator with Market share of 17.89%. BSNL market share has decreased by 0.34% during the month of June 2009 and during 2009-10 (upto 30.06.2009) by 1.09%.
(3) The overall tele-density in the country is over 39.86% with Chennai License area topping at 108.16% and Bihar License area lowest at 20.24%.
(4) During June 2009 Gujarat circle has lost its 3rd position, North East (NE-1 & NE-2) circle has lost its 1st position, UP(W) circle has lost its 3rd position and Kolkata circle has lost its 3rd position as an operator in these circle. Thus, BSNL now holds 1st position an operator with total number of telephone connections in 5 license areas viz. Haryana, Himachal Pradesh, Kerala, Punjab & UP(E) Circles.
(5) BSNL has No.2 position in total number of mobile connections in 4 License areas viz. Haryana, Himachal Pradesh, Orissa and Punjab Circles.

The letter has been issued with the approval of PGM(CP&M).

Encl:- Annexure 1 to 6.
(Sanjeev Tyagi)
DGM (CP&M-1)
Copy to : 27) O/c
28) CMD, BSNL
29 To 33) Dir (Consumer Mobility)/ (Enterprise)/ (Finance)/
(Consumer Fixed Access)/ (HR).
34 To 36) GM(C&M)/ Company Secretary/MIS
37) BSNL Intranet portal.

_________________________________________________________________________________________
Regd Office :Bharat Sanchar Bhawan, Harish Chandra Lane, Janpath New Delhi-1 Website: www.bsnl.co.in
For free of Cost infomation pl. contect
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hindochaashok@gmail.com M-9426201999

Friday, July 24, 2009

In BSNL-Disinvestment is Justifird?-imp. inf. by Ashok Hindocha M-9426201999

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Why disinvest when profits are booming?
R Nagaraj
There is need to revisit the arguments for disinvestment and ask whether the PSEs’ recent performance calls for a sale of public sector equity.
Disinvestment is back. Policy-makers believe that there is no reason to oppose it, since at least 51 per cent of the equity holding in the public sector enterprises (PSEs) would continue to remain with the government, which would retain their managerial control. However, this calls for revisiting the arguments for disinvestment, and asking whether the PSEs’ recent performance calls for a sale of public sector equity.
Dilution of public ownership is meant to bring down the fiscal deficit, thus potentially reducing the adverse inflation and balance of payment effects. Growing fiscal deficit could also lead to downgrading of the nation’s credit rating, raising the cost of international borrowing. Disinvestment is also expected to impart stock market-based discipline on enterprises’ performance, and reducing their losses.
Such reasoning assumes that the economy is currently in “full employment,” that is, any additional deficit would only translate into higher inflation, additional imports and deterioration in the external balance. But what if there are large underutilised resources, as in a labour surplus economy like ours with 56 per cent of the labour force still subsisting on agriculture? If deficits are productively used, they could yield additional output; hence the ratio of the fiscal deficit to GDP may not rise. So, in principle, what matters is not the deficit per se, but what is done with it.
Empirically, the relationship between the fiscal deficit, inflation and balance of payments is far from robust, denting the validity of the widely advocated policy to maintain a low deficit at all times. It, however, does not mean that the fiscal deficit can be ignored. They do matter in specific situations, depending on the state of the economy, the composition of debt, how it is financed and what they are used for.
A firm’s efficiency depends on the market structure: competitive markets, in principle, yield the desirable outcomes. But the bulk of public investments, almost by definition, are in industries that display decreasing costs or have considerable externalities – inviting public regulation to correct for market failures. Often these industries also have strategic value to the nation. Such market failures are most acute in networked industries like electricity (for that matter most infrastructure), which is why, the dividing line between regulated private industries (as in the U.S.) or public monopolies often gets blurred. In such situations, it is hard to argue that form of ownership makes a difference to performance.
However, it is finance theorists who argue the superiority of private ownership, based on the disciplining function that the secondary stock markets impart on a firm’s performance, via the threat of takeover or bankruptcy. Is the threat credible? No, not for the PSEs, as only a small fraction of their equity is sold and traded in the market. Evidence suggests that stock market based discipline on a firm’s performance has rarely worked to improve corporate efficiency even in the advanced economies. One only has to recall the recent experience to realise how, given the information imperfections in financial markets, corporate managers (or, promoters in Indian parlance) in the U.S. enriched themselves at the expense of their stakeholders and the economy (one only has to read Joseph Stiglitz’s The Roaring Nineties for evidence of this).
So, even in principle, disinvestment is unlikely to enhance efficiency. If, however, the objective is to raise revenue to reduce fiscal deficit (as seems to be the case now), its contribution is likely to be minuscule. For instance, during the 13 years since 1991-92 when disinvestment began, the cumulative proceeds of disinvestment was Rs. 29, 520 crores — amounting to less than 1 per cent of the cumulative fiscal deficit. Is it then cost effective? No, because it is a much costlier source of finance than debt; the average yield on equity is distinctly higher than the average interest rate on government bond. As the risk of default on government bond is zero, it would be cheaper to issue bonds than sell shares. Moreover, transaction costs of public issues (listing, underwriting, advertising and so on) are often too high. But, won’t debt increase the future burden of its repayment? It will not, if used productively. Perhaps the only robust rule one could think of is that as long as the national output grows at a faster rate than the interest rate (in nominal or real terms), there is little danger of explosive debt growth and national insolvency. Perhaps it is worth quoting Evsey Domar’s celebrated passage written in 1952, “… the problem of the debt burden is essentially a problem of achieving a growing national income. A rising income is of course desired on general grounds, but in addition to its many other advantages it also solves the most important aspect of the problem of debt. The faster the income grows, the lighter will be the burden of debt”.
Disinvestment also means forgoing the future stream of dividends from public investment. Why should the government forgo them, especially now that the PSEs profits are booming? (See my “Public Sector Performance since 1950: A Fresh Look”, Economic and Political Weekly, June 24, 2006). Central PSEs’ profitability – as measured by gross profits to capital employed – has almost doubled from 10.9 to 20.3, between 1990-91 and 2007-08. This is commendable by any yardstick considering that the petroleum companies had to bear the brunt of the administered prices of oil during the recent boom. Since 2003-04, the sustained improvement in profits (along with a turnaround in tax-GDP ratio) has wiped out government dis-saving, boosting the domestic saving rate to 37.7 per cent of GDP in 2007-08; a level close to what the fast growing East Asian nations have achieved. Over a longer period of the last 25 years, in the aggregate, capital-output ratio has steadily declined implying an undeniable rise in public sector efficiency. This is also evident in perceptible decline in employment, contributing to the improved financial returns.
Surely, many problems remain. The crux of the public sector financial losses lay with the utilities and transport. For instance, despite a steady raise in the physical efficiency of power generation for over the last quarter century (as measured by the plant load factor for thermal power plants), the state electricity boards incur huge losses because they cannot raise prices or enforce collection of user charges, as these are outside the enterprises’ purview; government is responsible for these policy decisions. Instead of squarely facing these hard questions of pricing of public services, the government is resorting to the softer option of selling shares of PSEs’, which are yielding improved returns year after year.
This is not to suggest that all is well with the PSEs. Surely there is an enormous need and scope for securing better returns on these investments, and to achieve their strategic objectives (wherever applicable). Despite the disinvestment, the owner’s (politicians and bureaucrats) dysfunctional interference in PSEs’ would persist, as they have little to fear from the market; the procedural audit of CAG would also continue. So if one is serious about improving public sector efficiency, then one should bother about changing the relationship between the government (the owner) and the enterprises — that is, reforming the corporate governance; an issue nowhere on the policy horizon.
As stock market-based discipline seems unworkable, what then is the alternative? We suggest a bank centric governance structure, patterned after the Japanese form of Kereitsu. Disinvest PSEs’ shares among interdependent PSEs and tying them around a large public sector bank (the main bank). As government holding in the PSEs falls below 51 per cent, direct interference from the government, and the parliament will get reduced, and the CAG audit will cease. Compared to stock market, banks, in principle, are better at screening investment projects, and monitoring fund utilisation to safeguard their reputational capital. As performance of a particular enterprise would depend on the other firms in the Kereitsu, there would be peer monitoring and better coordination by the main bank. To safeguard their loans, banks would be in a better position to appoint managers offering them long-term contracts with suitable incentives (for details see my paper, “Disinvestment and Privatization in India: Assessment and Options”, in Trade Policy, Industrial Performance and Private Sector Development in India, Oxford University Press, for the Asian Development Bank).
Surely this will not solve the problem of monitoring the monitors (the banks in this case), as government remains the ultimate owner. But with delegated monitoring and with multiple monitors like other regulators in place, there is a distinct possibility of greater professionalism and minimisation of dysfunctional interference.
In sum, disinvestment is unlikely to impart the expected efficiency gains; resources thus mobilised are costly and their quantum, as a proportion of the fiscal deficit, will be minuscule. The infrastructure deficit is perhaps a far greater danger than the fiscal deficit. So as long as the public debt is used for productive investment that yields additional output, extinguishing the additional debt burden would not pose a threat. Moreover, selling shares when the profits are booming makes little economic sense.
(R. Nagaraj is a professor with the Indira Gandhi Institute of Development Research, Mumbai; email: nagaraj@igidr.ac.in )
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