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BSNL, RailTel clearly incompetent, private firms would have done better: IT panel raps PSUs

Parliamentary panel on IT pulls up PSUs for slow pace of implementing BharatNet, a project critical to Modi govt's Digital India vision of internet connectivity even in rural areas.

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New Delhi: The parliamentary standing committee on information technology has shown its displeasure at the slow pace at which BSNL, RailTel and PGCIL implemented the first phase of BharatNet project to bring internet connectivity to rural India, a project considered key to realising Modi government’s Digital India vision.

In a report to be presented to Lok Sabha this Saturday, the IT standing committee said, “The way the project [BharatNet] had been implemented by the 3 CPSUs [Central Public Sector Undertaking] clearly indicated that they lacked competency and sufficient expertise to implement the project of this size. It simply gives an impression that the task could have been performed better by any other private agencies/global companies interested with the project.”

Three CPSUs were chosen to lay fiber under phase I of the project — Bharat Sanchar Nigam Limited (BSNL), RailTel, a telecom infrastructure provider that’s tied to Indian Railways, and the Power Grid Corporation of India Limited (PGCIL), or commonly referred  to as PowerGrid.

The committee’s criticism of the CPSUs was related to how they implemented the first phase of BharatNet. Initially called the National Optical Fibre Network, BharatNet was approved by the government in October 2011.

The project’s aim is to bring internet connectivity to all 2.50 lakh gram panchayats in India through optical fiber to provide a faster, more reliable internet connection.

On how important BharatNet is to Digital India, the committee noted: “BharatNet is the backbone and important pillar of ‘Digital India’ and the success of Digital India programme squarely rests on the success of BharatNet project.”

The committee added that the Digital India program was launched to bring “knowledge economy and to transform the entire concept of governance by making it more transparent and accessible to the citizen”.


Also read: Under Modi govt, top bosses of PSU banks have stopped getting extensions


Firms pulled up for delayed start, inadequate planning

The CPSUs were chosen for their experience in laying optical fiber and already having fiber laid out in the field that can be leveraged.

However, due to “inadequate” planning and preparedness, according to the report, the project lagged from 2011 to 2014. Phase I finally kicked off after July 2014, and was completed in December 2017 when BharatNet achieved its target of laying fiber to 1 lakh gram panchayats.

Noting the delayed start, the committee said, “Implementation had been done by the [Telecom] Department without seriousness and foresightedness, it deserves.”

“When the project is proudly claimed to be the world’s largest infrastructure [of] its own kind, the Committee feel that the strategy of implementation should also have reflected the grandeur of the project which unfortunately has not been in this case,” it added.

On how the CPSUs performed, the report stated: “The Committee note that in spite of having expertise and experience in optical fibre technology, the performance of the 3 CPSUs in Phase-I has not been satisfactory.”

The committee noted that the Union cabinet had approved a modified strategy in July 2017 to implement BharatNet to avoid shortcomings that slowed down the first phase of the project. Under the new strategy, during Phase-II, the remaining 1.50 lakh gram panchayats will get optical fiber and even wireless connections.

The deadline for this phase, set for August 2021, was reportedly extended given the Covid-19 pandemic disruptions.

‘RailTel performed the poorest’

RailTel particularly received a bad review for its poor progress in implementing BharatNet.

“The Committee note that under Phase-I, among all the CPSUs, the performance of RailTel was the poorest and in view of its poor performance, RailTel had not been allocated any work under Phase-II.”

About BSNL and PGCIL continuing with Phase-II of BharatNet, the committee said it hopes the two PSU’s performance will improve.

The committee added it would like “stringent measures, such as ‘penalty clause’ for not achieving the targets” to be applied to the CPSUs.

On this point, the report notes that the committee has a response from “the Government” that states the tenders floated for work under the project have an “indirect penalty” to ensure timely completion of work.

(Edited by Manasa Mohan)


Also read: Govt always makes efforts to revive potential PSUs, says Prakash Javadekar in Lok Sabha


 

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30 COMMENTS

  1. Private does so much better right ? So why tf airtel fiber suck so much in my locality along with every other service providers which are local? Stop shifting blame and admit that you the GoI have done nothing to improve the infra of the country and have only talked about welfare schemes on paper

  2. It’s a great, good development of India to make public sector companies into privatation. So can developed country within 2030.

    Benefits:
    1. Opportunities to open doors for sincerely, hard work, and Technical people lives in India.

    2. No need of Reservations in Employment.

    3. Responsibilities , Transparency, good relationship with customers is increased.

    4.Efficiency, Speed of work , Saving time of customers is increased. Value of employee work is rewarded depends on his/her credentials

    5.No pay for worthless work, Not possible to spend leisurely during duties.

    6. No need to waste the time to prepare government jobs by Fresher’s. So they are concentrated on their goals and large size of business Enterprenurship is Generated.

    7. Large income is generated to government by private sectors.

    8. No interventions by political people to support for promotions of Employee

    Regards

    Venkatarao.D
    Research Scholar
    Andhra University

  3. So the writer wants to say that govt took 3 years just to start the project and 3 PSU layed 1 lakh KM optical fibre in rural and non profitable areas. Govt is never wrong and everyone else is wrong Railway Bankers BSNL in short all the implementing personals but not the one who frame strange policies weird rules and changes them over night

  4. This is the typical method to sell off the public sector companies to the cronies, Adani and Ambani. Already the major ports and airports are in his pocket. Now the trains and railway stations and banks are on the way to his pocket.

  5. Everyone here in the comment box has an opinion,although few have spoken the truth, but there should be a solution to the non performance of the PSUs, and definitely a reason.. and the reason is, they are managed by incompetent and uneducated ministers, who are based and 100% corrupt, you know what I mean.

    Autonomy and funding to the PSUs is the need of the hour, selling is notna solution.

  6. The Incompetency of PSUS is delaying the grand vision of digital India… There is need to bring structural changes in these PSUs…

  7. If the center only doesn’t want bsnl to perform good, then how can they expect bsnl to become profitable. Government doesn’t let bsnl invest in high quality equipment, then how can they expect people to use bsnl services. They have just determined to privatise bsnl too…. If the center only doesn’t want bsnl to perform good, then how can they expect bsnl to become profitable. Government doesn’t let bsnl invest in high quality equipment, then how can they expect people to use bsnl services. They have just determined to privatise bsnl too….

  8. If the center only doesn’t want bsnl to perform good, then how can they expect bsnl to become profitable. Government doesn’t let bsnl invest in high quality equipment, then how can they expect people to use bsnl services. They have just determined to privatise bsnl too….

  9. Respected :
    There is nothing new( panel report),since BSNL +MTNL formation and all steps taken together till date i. e investing around 70K crores recently in its revival, makes it very clear that even present Govt. is not sincere in its efforts, nor they have any solution to set it right,observe how during last 6 years of BJP Govt, BSNL-MTNL performance went from bad to worst, who is responsible, of course political leaders, who drained public money.
    Regards

  10. I have Railtel fiber connection i can say they are lagging behind because of installation charges as i had invested 5k for installation and then 799 for 50mbps plan . While private players are doing installation for free if we opt for 3 months plan ans that costs around 2284+ rs including plans and installation. See they only have market where private players haven’t arrived.

  11. Corrupt politicians have ruined this all these 70 years, there are no rads,electricity, cleaner water to rural people how can one expect development within five years when no 4g is provided to BSNL for last ten years.

  12. What competence is required for digging a trench and lay the cables?

    BSNL may do the work through some contractor. If he has been given the money, he will not hold the work pending. May be the fund allotted for the Bharat net project might be small.

  13. Dear friends
    Pls check who is heading thsee so called committee.it is nothing but a well laid plan to sell these PSUs in the name of improvement.can anyone answer what action has been taken against person responsible.how much funding is actually provided.there r lots of questions need to be answered.

  14. As a retired executive having worked close to four decades in major Public Sector companies at far-flung remote areas, I read with pain and anguish the news regarding privatization of major PSUs by Government. As we may recall, Post-independence, when our country was reeling under severe shortage of steel/power(rather Nil resources), the foresight of visionary leaders and planners at that times enabled industrial growth during the successive five-year plans through creation of PSUs in the fields of Steel, Power , Telcom and other infrastructural areas. All those gigantic steel plants, power plants and other factories which were painstakingly built up, mostly at remote inaccessible locations over decades of struggle and hardships not only by our engineers and workers but also by the land-oustees, have now become major assets in monetized terms. The so-called Atma Nirbharta being talked about now was the motto of governments then itself in creating all those PSUs. The returns to government in terms of dividends from those PSUs all through these decades run into thousands of crores of rupees, a figure many times higher than the initial capital invested by Government. Further, even with no budgetary grants to the major PSUs, the entities are still performing excellently and contributing to the exchequer by way of dividends and by way of indirect taxes from the products. The actions of present policy makers remind me of childhood moral story of ‘Killing the Golden Egg laying Goose’ and also ‘Cutting the same branch of tree on which one is sitting’.

  15. Let’s face it Bsnl is a useless company with the worst customer service…. it’s poster boy would look like an old man with a crt monitor on his table..
    Funding is one thing but to utilise what’s available needs being updated and that certainly doesn’t need lot of money for sure.
    Privatise railtel Bsnl

  16. It is a fact these two PSUs are as incompetent as majority of other PSUS. It is high time for the Govt to dilute 51% stake in majority of PSUS & retain 49% . So that they will be run by the professionals and all the key decisions can be made by the board of directors ,instead of the ministry. Yet the Govt with 49% stake can get the profit without running the company directly & also have a say in the company.

  17. All PSUs and Government undertakings are remote managed by corrupt politicians and hence they are inefficient. Give them Autonomy and test for ten years

  18. I have applied for Fiber connection to my home thru BSNL and Railtel. Both are competing on how to ignore customers… what a pity. The two PSUs with the kind of infrastructure they have they are wasting time to make their assets obsolete in 5 years. Satellite Internet is going to help countries and that will be the final nail on both these PSUs.

  19. Make Railtel 50 percent privatization and set the system and process inline and that will help the organization flourish to heights. The enormous funds with Railtel can transform things in a better way.
    ” GOOD LUCK RAILTEL”

  20. The Govt knows very well that pvt players will not participate in this loss making project. Even now when I travel to remote villages in Chhattisgarh Odisha and Jharkhand only BSNL works. it is funny that even in small towns one sometimes find JIO signal but u are not able to call nor would internet work. Even with BSNL only 2g worksvat some location. Since it is fashionable to criticize PSUs now a days so the comments

    • They don’t do it for free, they guzzle millions and millions of taxpayer money to provide that service. What the article is saying is that in-spite of such heavy loss making (meaning heavy investments without output) they are unable to perform their duties. The current generation is used to working in MNC’s and private sectors so do not expect them to take a “kind” view on the inefficient and lazy babus. They very well understand that if they were to perform so bad in their own jobs they would be fired in no time so will naturally expect the same from the babus.

  21. This comments by the Parliamentary committee is nothing but to blame the psus and a greater conspiracy to privatise them. The committee members must have enjoying benifits from the private telcos. This is not new.

  22. Private companies would have never invested in infrastructure in rural areas. The author of this article has zero knowledge and 100% bias.

  23. These org are full of corrupts and super lazy bulls without brain. Don’t know how they get hired (obviously bribe i guess).
    Shut these NPAs immediately and ask these corrupt employees to start selling pakoda on roadside.

    • With 1 by 3 rd employees and changed work structure ,rules made by gov and dot which make it impossible to sue the franchisees and outsourcers,,
      Complicated softwares and approval structure and unavailability of capital money
      Each BSNL staff are putting their life into what they to.
      Spending money from their pockects as no money to run offices and maintenance ,to keep the generators power supply going .
      No regular Salary since an year.
      This is how BSNL is right now.
      Still we have strived to come up.
      Now there will be shouts ,because there is a boom in fibre connection given by BSNL.
      In this situation BSNL will capture the fibre LL market.
      Media is trying to put us down

  24. Is there any one talking about Hindustan photo films , doing nothing with officers enjoying bungalows at ooty? A small co. Lying low with connivance if bureaucrats in industry or commerce minustry.

  25. Ridiculous comment…..govt not approved funding from 2014 and still not allocating 4g …how they will competent with private operators……..these guys dont know reality half of the private operators are using BSNL towers, cables every thing that you guys dont know…..if you want make BSNL pravatise …please make it …please dont blame BSNL…..same thing will apply to you as well as …if I say u r in competent and selling Govt PSU…what you will say?

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