BSNL faces Rs 800 cr rev-expense gap; reviews outsourced functions

New Delhi: Cash-strapped BSNL has started an exercise to 'streamline' outsourced functions for saving up to Rs 200 crore annually, and also hopes to rationalise power bills to derive 15 per cent cost savings, a top official said on Tuesday.

BSNL Chairman and Managing Director PK Purwar said that the public sector undertaking faces a gap of about Rs 800 crore between its monthly revenue and expenses (operational expenditure and wages), so "challenges will remain".

Bharat Sanchar Nigam Ltd (BSNL) has been in the grip of severe liquidity crunch, and recently delayed payment of employees wages for the second time this year. BSNL on Monday said it has now released July salaries of employees.

Purwar said that payments for July salary were supported from internal accruals, in this case revenue generated from operations, and the company did not seek financial assistance from the telecom department for settlement of wages.

"We will review our operational expenses where ever possible, and take steps to reduce it. As part of this, we are reviewing the functions that are currently outsourced to see if they can be streamlined or if some of that work can be done in-house," he said.

He said the firm expects to derive cost saving of Rs 100-200 crore annually from this exercise, and assured that while the aim is to maximise output on existing resources, there will be no compromise on service quality.

Outsourced functions in BSNL ranges from optical fibre cable maintenance work to cable repair work, he added.

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