The central authorities has mandated all ministries, public departments and public sector items to make use of telecom companies of state-run Bharat Sanchar Nigam Restricted (BSNL) and Mahanagar Phone Nigam Restricted (MTNL). “The federal government of India has, inter-alia, accredited the obligatory utilisation of capacities of BSNL and MTNL by all ministries/departments of presidency of India, CPSEs, central autonomous our bodies,” a memorandum issued by the Division of Telecommunications (DoT) stated.
The memorandum dated October 12, was issued to all secretaries and departments underneath the Centre following session with the finance ministry.
The Division of Expenditure’s observe accompanying the memorandum talked about that the choice to mandate using BSNL and MTNL telecom service was taken by the Cupboard.
“All ministries/departments are accordingly requested to concern vital directions together with to CPSEs/Central Autonomous organisations underneath their management for obligatory utilisation of BSNL/MTNL community for web/ broadband, landline and leased line necessities,” the DoT memorandum stated.
The order comes as a reduction for the loss-making state-run telecom corporations who’ve been dropping their wireline subscriber base. BSNL recorded a lack of Rs 15,500 crore and MTNL posted a lack of Rs three,694 crore in 2019-20.
BSNL’s wireline subscriber base has eroded from 2.9 crore in November 2008, to round 80 lakh in July this yr. MTNL’s fixed-line prospects have come down from 35.four lakh in November 2008, to 30.7 lakh in July this yr.
State-run telecom agency BSNL has raised greater than Rs eight,500 crore by sovereign assure bonds to increase its community and handle operational bills.
MTNL is but to lift Rs 6,500 crore by sovereign bonds which was accredited by the Cupboard in October 2019, as a part of its revival package deal.
(With PTI inputs)