The state-run Bharat Sanchar Nigam Ltd (BSNL) has said that it is hopeful of paying salaries to its 1.76 lakh employees for September before Diwali.
After its employee unions threatened to go on a day-long hunger strike over delayed salaries, BSNL chairman and MD PK Purwar told news agency IANS, "We will give salaries to the employees before Diwali from our own resources on accruals. We generate Rs 1,600 crore a month revenues from services."
BSNL's per month salary payout is Rs 850 crore. Though it generates about Rs 1,600 crore per month in revenues, the amount is not enough to cover the wages as a major portion of the proceeds is required for operational expenses and statutory payments, sources said, adding that the PSU has been trying to raise funds from bank through government guarantees, which it is yet to get. The PSU also has to clear vendors dues from the internal accruals.
The telco posted a net loss of 13,804 crores in FY19. The induction of 4G spectrum and a voluntary retirement scheme to cut its huge workforce, can lessen its financial woes but these may take time even though they are on the government's priority list, said Purwar.
The Finance Ministry and the PMO are in favour of Rs 50,000 crore capital infusion for the revival of the BSNL and MTNL, the state-run telcos.