BSNL. MTNL Current Affairs - 2020

Public Enterprises Survey: Air India, MTNL, BSNL highest loss makings PSUs in FY19

On February 10, 2020, the Department of Public Enterprises operating under Ministry of Heavy Industries tabled the “Public Enterprises Survey” on the parliament. The report says that the net profit from the PSUs has increased by 15.5% as compared to the previous year.

Highlights

The survey said that Indian Oil Corporation, NTPC and ONGC were the top three profitable PSUs in 2018-19. On the other hand, MTNL, BSNL and Air India were the highest loss-making PSU. Also, the survey noted that these three PSUs have been making losses for three consecutive years.

The report also said that total income from Central Public Sector Enterprises (CPSE) in the year 2018-19 was 24 lakh crore rupees. It was 20 lakh crore rupees the previous year. There has been an increase of 4.67%

Relative performance

The enterprises such as MSTC, Chennai Petroleum Corporation and State Trading Corporation that were making profit last year (2017-18) incurred loss in the fiscal year 2019 (2019-19).

There are a total of 348 CPSEs. Out of these 249 are operational, 13 are under closure or liquidation and 86 are under construction.

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GoM constituted to fast track revival plan of BSNL

On December 27, 2019, GoI constituted a 7-member group of ministers to fast track the implementation of revival plan of BSNL and MTNL. The revival plan includes allocation of 4G spectrum and asset monetization. Earlier, GoI approved the revival plan of merging BSNL and MTNL.

Highlights

The seven-member group of ministers include Defence Minister Raj Nath Singh, Telecom Minister Ravi Shankar Prasad, Finance minister Nirmala Sitaraman, Home Minister Amit Shah, Oil Minister Dharmendra Pradhan and Commerce Minister Piyush Goyal.

The crucial elements of the revival plan include workforce, business viability, monetization, issue of bonds and 4G spectrum allotment. GoI allocated Rs 69,000 crores for reviving BSNL and MTNL. Both the entities have been reporting losses over a decade.

Group of ministers

Group of ministers are appointed by the GoI under Transaction of Business Rules, 1961. According to para 6 (4) of the rules, Ad hoc committees of ministers including GoM sha;; be appointed by standing committee of cabinet, cabinet or by the PM. The GoM do not have decision making powers. They investigate and report to the cabinet. On the other hand, Empowered Group of Ministers (EGoM) can make decisions. They are also formed by GoI.

In 2014, EGoM was dissolved and the changes are still under process.

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