MTNL makes news not for its services but for its losses. And this is a year on year occurrence. And the head of such a company, the CMD designate, PK Purwar, who is also the finance director says, that “savings is ultra vires.” The amount, which would have been saved from this so called “ultra vires” decision, is Rs 7.4 crore and is related to the transportation expenditure of MTNL officers and the utilization of 150 drivers of the company, who presently draw their salaries for sitting idle.

Mr Purwar communicated this decision when senior officials of the company presented a cost saving strategy in this matter. The MTNL Mazdoor Sangh, the workers’ union, also tried to convince Mr Purwar that the driving staff should be utilized, as it would lead to substantial cost savings for the company. Instead, they were told, how utilizing drivers would create long-term liabilities, while hiring a fleet with all its paraphernalia, was a better option. So, for transportation, MTNL has a big hired fleet, for which it pays, overtime included, and it has a non-driving driver pool to whom salaries are paid for doing nothing. For details read our cover story.

Several top bureaucrats use PSUs as Convenience Stores, and various other corrupt practices. We have revealed in our earlier editions the activities of NK Yadav, Member (Services) who also doubled up as former CMD of MTNL. The abuse of MTNL continues under Mr Purwar also, and even the telecom secretary JS Deepak, is a beneficiary. Thus, a premium car has been provided for the personal use of the telecom secretary’s daughter at MTNL’s cost. Are the secretaries to the government of India to use the PSUs for the personal indulgences of their family members? Are CMDs of PSUs to serve as orderlies? These are important questions.

Mr Purwar had been recommended for the top job in MTNL by the PESB in 2013 too. But the then telecom minister Ravi Shankar Prasad on April 10, 2015 had nixed it, describing various insufficiencies. Mr Purwar, he said, lacked experience in ‘leadership positions in telecom operations’, he did not have ‘sufficient seniority’ and the like. Thereupon a new search-cum-selection process was called for and instituted. Then, the minister was changed in a cabinet reshuffle, and Mr Purwar got a chance to come back.

Also in this issue, read how the NFS project cost is just rocketing up, from Rs 9,175 cr to Rs 24,883 cr through cost manipulation to favour private vendors and slow rollouts. Plus, there are important features on ITS cadre review and remonetisation.