The full Telecom Commission (TC) has rejected a key recommendation of the Sam Pitroda Committee on BSNL restructuring which suggested splitting the post of the chairman and the managing director into two. The commission has cited the most bizarre of reasons for the same: ?It may not be feasible in only one PSU as it may trigger protest from BSNL and demand for similar treatment by other PSUs.? This means that if the post is split in BSNL there may be demands from its employees that the same should be done in other PSUs as well.
The recommendation was that the CMDs post be split into two: a chairman who could be some eminent person and the MD or the CEO who runs the day-to-day operations and reports to the board.
The Pitroda committee was set up by the PM in January last year to suggest ways to put the ailing BSNL back on tracks. HDFC chairman Deepak Parekh and the then DoT secretary PJ Thomas were the other members of the committee.
The aim behind splitting the post of CMD was to insulate the company from political interference where the eminent industry person acting as a chairman could act as a buffer between the political leadership and the company’s management.
Reluctant to let go off the DoT?s control in functioning of the enterprise, the commission has in fact gone a step ahead and even said the recommendation of reducing the government?s interference and interaction in the day-to-day decision-making of BSNL cannot be accepted. It has concurred with an internal DoT committee?s take on the issue by stating, ?In general interaction with BSNL should be through board representation. However, target setting and periodical review of performance by DoT along with interaction for statutory functions may continue.?
On the issue of disinvestment and listing BSNL, the commission has said listing the company at this point of time will not be a good option. On the issue of cutting the company?s staff by retiring or offering voluntary retirement scheme since the employee cost exerts the biggest pressure of 40% on the company’s margins, the Telecom Commission has said that VRS across board may not be required. BSNL could examine the option of VRS for select categories, examining the financial burden and the cost benefit to the company.