Does BSNL Exist for Employees' Sake?

The employees' union of Bharat Sanchar Nigam Limited (BSNL) have threatened to go on indefinite strike if their demands are not met. The action taken by these employees has raised certain pertinent questions regarding the role of BSNL in India as of now, and, more importantly the larger role of public sector undertakings in the country.

One must clearly have the understanding that since India became independent there has been the policy and practise of mixed economy as the infrastructure in those days was in undeveloped stage, even today it is not in one of the happiest states, however, there have been efforts over the decades to make the infrastructure better. Telecommunication is one aspect of infrastructure which has seen technological advances in a rapid manner, and the advancement is taking place swiftly over a short period of time, making these revolutionary changes available to the general masses. With changes in public policy related to telecommunication, there have been private companies playing a major role in making the services accessible to the people at competitive rates.

The major role of public sector is to strengthen the framework in a country and provide the much needed skeletal support to the services, but it all has to be fleshed out by the private sector, and, it is very difficult to defend the survival of public sector at the cost of growing private business. The public sector is truly needed in those particular areas where geographically it is not possible for the private sector to perform and that becomes the bounden duty of public sector as state owned entity to reach out to the masses in these places, as well as in those areas where the services being provided are not commercially viable, and, hence, do not make any sense for the private sector to operate there.

That has been typically the role of telecommunication company, BSNL, and the state owned airlines, Air India, however, both of them have not been doing well financially and have been seen as a major burden on the state exchequer. This could have been taken care of by the country perpetually if there had been no other service providers, which, fortunately is not the case and there is no dearth of private sector companies willing to provide the services even in the remotest possible areas, as there are regulatory measures made by the legislature and the executive to compel the private companies to even provide the services in remote areas.

In such a situation it does not make any sense for a public sector company like BSNL to continue providing these services and also threatening the country with indefinite strike. There has to be a balance reached between the public sector and private sector and one must realise that the public sector does not exist for the sake of the employees. Rightly a public sector exists only to provide the services to the people and if technologically or commercially or for any other reason this can be equally done, or at times even in a better manner by the private sector, there is no need for the public sector to exist. There is not any moral high ground even.

There can, at times, be an essential role to be played by the state enterprises in times of distress and disaster management. For that it is really prudent for the country to maintain certain services, but in a very small measure, which can be performed by the government agencies in such critical state. During those times the basic network and framework created by the public sector can be utilised along with taking control of the private enterprise, which the administrative and constitutional law permits in situations of extreme national emergency and importance.

Policy formulation ought to provide a level-playing field to both private and public entities, however, public sector has to be pruned according to the fast changing times. BSNL, Air India, ITDC hotels, etc. are in the "fast extinction" category. The State need not save them on the lines of "save tiger" campaign. Let them die a natural death, without pumping in oxygen. Withdraw the life-support system.

Public sector must exist for the public, and not for the sake of employees.

Indian Institute of management, Ahmedabad