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Largest Indian company, Bharat Sanchar Nigam, launched

By transferring assets worth Rs 630 billion (book value), the government has created the largest Indian telecom outfit whose size compares to that of any Fortune 500 company's. The new company would be empowered to venture any area of communication including basic, cellular and internet.

Launching the corporation at a simple function, Paswan said with DTS showing a profit of over Rs 75 billion last year, the new corporation would be given total functional autonomy and 'Navratna powers for making investment decisions'.

Assuring the employees of full security in the process of change, he said, "I will continue the dialogue with employees' representatives over the next few days. All the pending issues will be sorted out. We will form a sub-committee to look into all these issues."

Describing the incorporation of BSNL, which would have about 400,000 employees, as a historic step Paswan said it would play a crucial role in fulfilling the target of providing telephone on demand by 2002 and providing 170 million new connections by 2010.

Paswan said BSNL would be provided a level playing field vis-a-vis private operators and it would operate on a commercial basis, adding that consumers would be the ultimate beneficiary as BSNL would be competing with other players.

Starting with an equity of Rs 50 billion, BSNL would have a loan liability of Rs 50 billion and would take all the responsibility of providing connectivity in rural areas.

Government had announced a roadmap for corporatisation of the Department of Telecom Services early this year and thereafter appointed A F Ferguson as a consultant to help the government to work out the modalities.

However, the process was not that easy. Three major federations claiming support of over 300,000 employees went on a nation-wide strike for three days early this month demanding settlement of various labour issues. The strike was called off after the government agreed to pay pension from the Consolidated Fund of India.

On its side, government had offered group C and D employees, who opt for BSNL from October one, a lumpsum of Rs 1000 per month, which is adjustable against the salary later. A cut off date for exercising the option of absorption would be given to group B employees too.

Government has also worked out a package of measures so that the viability of BSNL was not compromised by social obligations.

EARLIER REPORT
Govt to pay pension; telecom officers intensify agitation

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