PM
Modi is leaving no stone unturned in promoting that he is an efficient
‘chowkidar’ (watchman) and that the previous governments were weak. He
has even accused the UPA government of weakening the public
institutions.
Does that mean there’s a hope for ‘achhe din’ for these institutions under the Modi government?
Does that mean there’s a hope for ‘achhe din’ for these institutions under the Modi government?
Also Read : BSNL's total loss crossed Rs 90K cr: Kotak Equities
Not
just BSNL, this is also the state of many other organisations, like
MTNL, ONGC, Air India, HAL and public sector banks. After all this, PM
Modi asks for votes in the name of being an efficient ‘chowkidar’ and development
Using ‘war’ and ‘nationalism’ as strategy, the BJP wishes to win the 2019 elections. But the state of government-run institutions like Air India, public sector banks and BSNL might be a setback for the party. Increasing financial weakness of these government-controlled institutions are raising doubts about government policies and its ways of working.
Using ‘war’ and ‘nationalism’ as strategy, the BJP wishes to win the 2019 elections. But the state of government-run institutions like Air India, public sector banks and BSNL might be a setback for the party. Increasing financial weakness of these government-controlled institutions are raising doubts about government policies and its ways of working.
The Ordeal of BSNL
Let’s start with Bharat Sanchar Nigam Limited:
Till the financial year of 2008, BSNL had the net cash of Rs 37,163 crore, but slowly, it slipped into a debt of Rs 16,093 crore in 2018. Because of this, BSNL failed to pay two months’ salary to its 1.76 lakh employees on time.
Till the financial year of 2008, BSNL had the net cash of Rs 37,163 crore, but slowly, it slipped into a debt of Rs 16,093 crore in 2018. Because of this, BSNL failed to pay two months’ salary to its 1.76 lakh employees on time.
In fact, BSNL is proposing to cut down jobs and give more voluntary retirements. It is also planning to bring down the age of retirement from 60 to 58 years and cut down on travel and medical allowances of employees.
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Also Read : BSNL Finance Director replaced amid financial crisis
MTNL on the Edge of a Shutdown
MTNL
is going through a similar ordeal. MTNL is also in a debt of
approximately Rs 20,000 crores. The situation is pushing the company
toward a shutdown.
Air India’s ‘Crash-Landing’
You
must have seen political leaders take flights for election campaigns.
But here’s the damage story of this government-run airline. According to
audit reports, Air India had faced a deficit of a total of Rs 47,145.62
crores in the financial year of 2016-17.
Air India’s net loss is Rs 5,337 crores, which means there is a loss of Rs 15 crores per day. To save the debt-ridden company, the central government is being forced to sell the land and the real estate that belongs to BSNL, which is under the debt of Rs 40,000 crores.
Air India’s net loss is Rs 5,337 crores, which means there is a loss of Rs 15 crores per day. To save the debt-ridden company, the central government is being forced to sell the land and the real estate that belongs to BSNL, which is under the debt of Rs 40,000 crores.
Woes of Public Sector Bank
It
is also important to take a look at the state of government-run banks.
According to RBI, till 30 June 2014, the gross NPA of government banks,
which means Non-performing asset was Rs 2,24, 542 crore.
By 31 December 2017, this amount had increased to Rs 7,24,542 crore and in 2018, these banks’ NPA increased to Rs 10.39 lakh crore.
By 31 December 2017, this amount had increased to Rs 7,24,542 crore and in 2018, these banks’ NPA increased to Rs 10.39 lakh crore.
The ONGC Turmoil
There
was a time when the country’s biggest energy company, Oil and Natural
Gas Corporation (ONGC), was called the ‘most cash-rich’ company. It
didn’t face any debt till 2014, but going by its balance sheet, the
company came under the debt of Rs 25,000 crore in 2017.
HAL’s Financial Crisis
The
government’s defence and aerospace company, Hindustan Aeronautics
Limited (HAL), is going through a financial crisis as well. The company
has borrowed a loan of Rs 1,000 crore to pay the salaries of its
employees.
Money Constraints of TIFR
According to the Department of Atomic Energy, the TATA Institute of Fundamental Research is also suffering from financial problems.TIFR has, in fact, had stated that it will be able to pay its scientists, staff and research scholars only 50 percent of the salary in the month of February, but the employees were quickly paid the remainder of their salaries as soon as the news of a salary cut broke.
Also Read : A Day After Citing Fund Crunch, TIFR Pays Staff Salaries in Full
Not
just the TIFR, but close to 10 autonomous organisations under the
Department of Atomic Energy are going through an economic crisis.
Why did the government let such a crisis come to be? A dose of nationalism might still be acceptable, but the security of government-run institutions must also be ensured.
The state of these government-run institutions shows that the chowkidar hasn’t quite done his work properly.
Why did the government let such a crisis come to be? A dose of nationalism might still be acceptable, but the security of government-run institutions must also be ensured.
The state of these government-run institutions shows that the chowkidar hasn’t quite done his work properly.
