Domestic Telecom Gear Makers Might Reduce Workforce As BSNL, MTNL Fail To Pay: Report

The Department of Telecom is trying hard to help state-run telecom operators BSNL and MTNL. The ministry is in the process of merging both operators. However, now it has been reported that the domestic telecom gear makers are likely to reduce their workforce. The report says that the companies are not getting payments from BSNL and MTNL during the lockdown.

"The continued delay in clearing our dues by government-owned companies has led us to a critical situation that too at a time when there is a complete lockdown, forcing us to look at ways to cut costs including headcount reduction," a senior executive of a gear company was quoted by Economic Times.

In fact, Telecom Exports Promotion Council and optic fiber companies want government intervention in the matter so that they can get the payments. The gear companies also claim that both BSNL and MTNL have to pay Rs. 2.300 crore dues. Similarly, the Department for Promotion of Industry and Internal Trade has asked operators to clear their dues to micro, small and medium enterprises as soon as possible; otherwise, they will inform the Ministry of Finance.

Furthermore, Sandeep Aggarwal from PHD Chamber said that the government should clear all dues from the Universal Service Obligation Fund (USOF). It said the finance ministry should intervene in the matter and help the sector. "In view of telecom being a critical service during the time of Covid-19 pandemic, the companies should be allowed 50 percent operations after providing safe conditions, and social distancing between workers," Sandeep Aggrawal said.

It is worth noting that this is not the first time the telecom industry has asked DOT to clear this matter. Earlier, COAI had written to the telecom secretary for the same. There are at least seven to eight companies that want their dues to be cleared.

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