Scindia Urges Odisha CM to Clear BSNL's Rs 28.54 Crore Dues for Telecom Stability
Scindia Urges Odisha CM to Clear BSNL's Rs 28.54 Crore Dues

Union Minister Scindia Appeals to Odisha CM for Swift Settlement of BSNL's Rs 28.54 Crore Dues

In a significant development concerning India's telecommunications sector, Union Communications Minister Jyotiraditya Scindia has formally urged Odisha Chief Minister Mohan Charan Majhi to direct state departments and agencies to expedite the clearance of outstanding dues owed to Bharat Sanchar Nigam Limited (BSNL). The total amount pending has reached a substantial Rs 28.54 crore as of December 31, 2023, highlighting a pressing financial issue for the public sector telecom giant.

BSNL's Critical Role in National Telecom Infrastructure

In his recent communication, Scindia emphasized BSNL's indispensable position within the country's telecom framework. He noted that BSNL serves as a crucial backbone, particularly in rural and remote regions, where private operators may have limited presence. Additionally, the minister highlighted BSNL's support for key government users, including the armed forces, banks, and various institutions, underscoring its strategic importance.

Scindia pointed out that BSNL's extensive network and widespread reach make it a dependable platform for delivering citizen-centric services. This reliability is vital for ensuring connectivity and access to essential services across diverse demographics, especially in underserved areas.

Financial Stress and Revival Efforts

The minister flagged the ongoing financial stress faced by BSNL, despite multiple revival packages approved by the central government in 2019, 2022, and 2023. These packages were designed to enhance BSNL's viability and competitiveness in a rapidly evolving telecom market. However, Scindia stressed that the public sector unit still requires steady cash flows to manage routine operations and modernize its telecom infrastructure.

He reiterated that as of December 31 last year, the outstanding dues from Odisha state government departments and organizations stood at Rs 28.54 crore. This accumulation of unpaid bills poses a challenge to BSNL's financial stability and its ability to maintain service quality.

Previous Appeals and Current Urgency

Scindia mentioned that the Department of Telecommunications (DoT) Secretary, Neeraj Mittal, had previously sought early clearance of these dues. Emphasizing BSNL's role in providing secure and reliable communications, the minister argued that timely payments are essential to sustain operations and uphold service standards. He further stated that state support is crucial for BSNL to continue contributing to both regional and national development.

In his letter to CM Majhi, Scindia wrote, "I would, therefore, request you to kindly issue necessary instructions to the concerned departments and organisations to expedite the settlement of all outstanding dues to BSNL at the earliest. Your timely intervention in this matter will greatly contribute to BSNL's financial stability and its continued ability to serve the people with robust and essential telecom services."

State Government's Response and Historical Context

On the state government's side, Additional Chief Secretary Hemant Sharma, who oversees the home, industries, and information and public relations departments, indicated that he would review the letter and take appropriate steps to repay BSNL's pending dues. This response suggests a willingness to address the issue, though concrete actions are yet to be seen.

It is noteworthy that Scindia has written similar letters to Chief Minister Majhi on previous occasions, specifically on November 25 and September 1 last year. This repeated correspondence underscores the persistent nature of the dues problem and the central government's ongoing efforts to resolve it.

The situation highlights the broader challenges faced by public sector enterprises in managing finances amid operational demands. As BSNL strives to modernize and compete in the telecom sector, timely clearance of dues from state entities becomes increasingly vital for its sustainability and service delivery.