The employees union of state-owned telecom operator, Bharat Sanchar Nigam Ltd (BSNL)is prepared to go into an indefinite strike if the government gives a go ahead with the plans to float a maiden initial public offering (IPO). The Minister for Communication and information and technology, A Raja has called for a meeting with the union to hold discussions on the issue tomorrow after which he will address a press conference.
V A N Namboodiri, general secretary, BSNL employee union, says “Our position on the matter is very clear and we strongly oppose the company going for an IPO. BSNL does not require any money, it has enough so we do not understand that need for this listing.”
“We are not aware of the exact agenda for the meeting that the minister has called but we will listen to him and then take a suitable decision. We have also intimated the management that such a move could lead to an indefinite strike by the employees,” he added.
The management of the PSU has been citing the listing as a criteria for acquiring the Navaratna status for the company. Namboodiri, however, dismisses this argument saying, “ Many PSU’s have got their Navratna status even without being listed on the stock exchange.”
The listing of the PSU had earlier also reached a snag due to the opposition by the unions. Earlier this year, Kuldeep Goyal, BSNL Chairman and Managing Director, had said, "An IPO might be necessary for us as we will invest around Rs 60,000 crore in the medium-term basis."
Industry analysts had estimated BSNL to be valued at over Rs 4,00,000 crore. The plan was to divest 10 per cent through the IPO.
