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- Law Ministry issues corrigendum to Jammu and Kashmir Reorganisation Act
- Appointment of the Judges in India.
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- Indian Penal Code 1860, HM Amit Shah wants to Overhaul IPC
- National Population Register (NPR) 2020
- Whistle Blowers Allegations on Infosys
Governance & Social Justice
- 60% girls in Delhi colleges anaemic
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- Population pyramid : India Vs China, Demographic dividend Phase of India
- UN Population Report, India will become the most populous country by 2027
- Supreme Court upholds SC and ST (Prevention of Atrocities) Amendments Act
- Comparing Population Pyramids of India and China
- Waqf boards-Their governance and purpose
- Harvard Admissions Case
- Pradhan Mantri Jan Arogya Yojana- Ist Anniversary, Problems and solutions
- Significance of sexual and Reproductive Health-Status of reproductive services in India
- Pregnancy in Old Age, What is In Vitro Fertilisation-Risks and legal shortcomings
- Supreme Court Judgement on NGOs and RTI
- Social Stock Exchange
- Rajasthan Govt changes EWS norms, Sets Rs 8 lakh family income as only criteria
- Global hunger index 2019
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- China’s GDP growth slows to 6% slowest in 27 years
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- Global Growth Slow Down
- Nobel Prize in Economics 2019
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- SBI wrote off bad loans worth 76,000 crores
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- Agriculture Credit by RBI’s Internal Working Group
- What is Debt to GDP Ratio?
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- Mizoram to have Broad Gauge railway line by 2021
- Demand downturn in Indian Economy
- Payment facilitation fund
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- RBI’s 4th Bi-monthly Monetary Policy 2019-20
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- Draft Social Security Code 2019
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- Competitiveness Index 2019 by World Economic Forum
- NITI Aayog’s Water Resources Strategy
- BSNL and MTNL financial issues-DoT prepares Rs 74000 crore revival plan
- 20th Livestock Census
- India falls 10 ranks in World economic forum’s Global competitiveness index
- RBI stops Printing Rs 2000 Notes
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- India’s Economic Growth 2019
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- Mahatma Gandhi’s theory of Economics
- India moves up 14 spots to 63 on world Bank ease of doing business index
- New amendments to the Motor Vehicles Act
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- Telecos to Pay Rs 96,642 crore to the Government
- Camel population declines in Rajasthan
- Merger of BSNL and MTNL
- World bank on Indian economy
Defence & Security
- Nagas Kukis Conflict, What is the cause of the latest tensions?
- Case against 50 Celebrities controversy
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- UP Government fires 25000 home guards, Is Yogi Government’s decision justified?
- NCRB’s Crime in India 2017 report
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- What is TechSagar? National repository of India’s cyber tech capabilities.
Science & Technology
- ISRO’S Project NETRA
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- WHO launches first World report on Vision
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- New King of the Moons in the Solar system is Saturn
- What Is Spectroscopy ?
- Quantum supremacy
- Climate Vulnerable Mapping Of India
- C40 Cities
- Gujarat Unveils emission trading scheme
- Forest Plus 2.0
- Himalayan States seeks Green Bonus
- India to Phase Out Single Use Plastic (SUP) by 2022
- Role of Volcanoes in Global Warming
- NH 766 ban controversy, Protests in Kerala against night traffic ban on the forest stretch
- Climate Change needs Global Solution
- Aarey Forest -2185 trees to be cut for Mumbai metro
- Government to build 1400 km long Green wall
- Graded Response Action Plan in Delhi
- Aerosol formation brightening clouds
- Anthrax outbreak in Pobitora Wildlife Sanctuary, Two affected buffaloes died
- Species in News from June to October 2019
- Climate Action Summit 2019
Tag:GS-3| Economy|| Infrastructure|| Communication
What is the issue?
- BSNL and MTNL, the state-owned telecommunications firms, are under considerable financial pressure.
- In this context, here is a look at the causes and the possible measures out.
Status of the two firms
- In the last Union budget, only Rs 100 crore was allocated as direct budget support to these two major firms.
- But by means of internal and extra-budgetary capital, they are supposed to rise over Rs 15,000 crore.
- g. BSNL lost nearly Rs 14,000 crore in 2018-19, bringing its total losses to over Rs 90,000 crore.
- The company has nearly 170,000 workers whose salaries consume 77% of its revenue.
- Both BSNL and MTNL have long been a drain on the public exchequer and on the state’s borrowing capacity.
- Government Policy Decisions: Many factors can be blamed for this situation, including government policy decisions of the past.
- The entry of Jio: The entry of Reliance Jio has, in addition, made things difficult for all legacy players.
- Structural changes: The decline of the public-sector telecom majors is due to structural changes in the business itself.
- Service-based business
- The telecom sector is increasingly a service-based business.
- This means that private-sector companies have an inherent advantage over even public-sector ones with the softest of budget constraints.
- Given all, there is little reason to imagine retaining BSNL or MTNL in their current state.
Is revival a feasible option?
- The departmental bureaucrats of the companies and their associate Union argued that reviving them is cheaper than shutting them down.
- In the case of BSNL, it would cost Rs 95,000 to get the 170,000 workers off the payroll through voluntary pension schemes and the like.
- A recovery kit, on the other hand, will cost less.
- It is also claimed, however, that not all employees in the public sector should be treated in the same way.
- Some may be re-absorbed in other public-sector undertakings or the government, which in many key areas
- Also, many others would be close to retirement anyway.
- On the other hand, the revival project is not very realistic as losses beginning 2 years from now would be sharply narrow.
- BSNL would, therefore, be in worse condition by
- As with Indian PSUs, due importance must be attached to the extensive network infrastructure that has been created.
- This is to be seen in contrast to the tarnished brand name and employee roll pressure.
- It is certainly not possible to neglect the infrastructure.
- For example, the Bharat Fiber network covers more than 800,000 km
- More than Vodafone-Idea, Bharti Airtel and Jio put together.
- At this stage, it is worryingly under-used and undervalued.
- Significant national savings would be required to ensure that private-sector investment does not replicate this network.
- Thus, the emphasis on the PSU telecom majors must be on how their assets can be sold.
- This is to ensure higher productivity, and see how their manpower can be absorbed elsewhere where necessary.