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BSNL to close down loss-making exchanges in cost cutting bid

NAGPUR: After delaying salaries for February, BSNL, which paid the wages for month of March a day ahead of it was due, could also be making an allowance for a variety of price slicing measures.
Sources said it's being thought to be to shut down certain exchanges which might be loss making.

This signifies that BSNL will likely be casting off its landline services and products in such areas that could be changed via cell telephony, said sources a part of the method.

Landline services and products are already a loss making trade. There are some exchanges in the rural areas where just a small number of connections are being serviced. Running the exchanges aren't a viable proposition for BSNL because the income is lower than the expenditure in opposition to electrical energy expenses and annual maintenance. Such exchanges might should be close down. However, in an effort to proceed with the services and products, BSNL might replace it with cell connections, said the supply.

Power expenses are a number of the major expenditure incurred for running the exchanges. BSNL has additionally taken efforts to exchange conventional energy with solar energy and also shift from low stress connections from top stress in order that the power invoice is lowered. However that has now not proven enough thus far.

It’s learnt that Maharashtra circle is financially strong with a income of over Rs350 crore. However, the collections go to the common pool of entire BSNL which determines the entire financial place of the company, said sources.

Meanwhile, sources in the trade unions said the salary was paid on March 30, a day ahead of it was due. Apart from the salaries even the other dues were cleared. Even because the salaries weren't paid from February, BSNL had deducted dues in opposition to EMIs and insurance premium from employees’ salaries however had now not paid the quantity further.

Under particular arrangements, the loan EMIs and premium to LIC is deducted from the salaries and paid to the respective businesses. However, since December even because the deduction have been made the quantity was now not paid, leading to a default being registered in the employees’ name.

The quantity has now been paid up via the control. As BSNL had didn't pay the money previous, the employees paid the EMIs from their very own price range. Now as the company has additionally remitted the quantity to the banks it has ended in advance payment of their accounts, said a supply in the BSNL union here.

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