BSNL And Its Revival Packages- Indirect Scheme To Benefit BJP’s Real Beneficiary- Ambani?

BSNL receives third revival package

The initial BSNL revitalization package cost INR 69,000 crore. Subsequently, in 2022, the government authorized a second revitalization package for INR 1.64 lakh crore. A third revitalization package of INR 89,047 crore was just approved by the Cabinet Committee on Economic Affairs. However, despite these two revival packages and a third one on the way, BSNL is still under a debt worth INR 22,289 crore.

Is there a need for government funding of BSNL?

According to statistics provided in the Lok Sabha by Telecom Minister Ravi Shankar Prasad, BSNL along with MTNL have leased out 13,051 and 392 mobile tower sites to privatized telecommunication service suppliers, correspondingly. Jio has obtained 8,307 sites from BSNL as well as 137 from MTNL. He also told the parliament that Jio is now BSNL and MTNL’s largest customer for mobile towers.

Additionally, in a world where telecom giants including Reliance Jio, Airtel, and Vodafone have for a long time now, begun offering 4G/5G services. Why would users choose BSNL, a late entry into this market, for these services? How will the money that the government has invested pay off?

This gets us to our final queries: Why does the government finance BSNL, especially in such large amounts? Why is BJP spending tax payers money on sinking PSUs?

Will BSNL be bought by Ambani?

The continuous funding of BSNL by Modi government either shows excessive determination to make the company a huge success or seems to be a part of an elaborate plan. Knowing the history of Indian Politics, everyone knows which option seems more viable.

According to a research study, during 2009 and 2016, the overall market value of India’s eight largest government-owned firms (commonly known as public sector undertakings) decreased by 33%, while the country’s benchmark Nifty index rose by 9%. The productivity difference in India between publicly and privately owned companies is a major factor in this discrepancy. Huge funding, access to government resources along with necessary workforce; where are public/government companies going wrong?

It is a well-known trend in which government enterprises get enormous quantities of investment from government funds for years, but continue to lose money. This reduces their market worth, and they are subsequently sold at a low price to the largest private player. Within 6 months to a year after being privatized, such a government enterprise becomes profitable.

The only practical justification for such a development may be the usage of finances in the appropriate direction for the company’s growth. Such enterprises use government subsidies to purchase pricey machinery and tools essential for operation in the specified area. However, whether or not these machines and equipment are actually utilized in the company’s operations remains a contentious topic. When public firms are privatized, the private company begins to use the expensive machinery purchased with government cash correctly, and the company begins to profit.

Timing, value, process transparency, decision-making, and the alignment of multiple stakeholder interests must all be evaluated and account for by the government. Historically, several Indian administrations have faltered during this stage of the process.

All of this appears to be a shady tactic by the government to let the value of a public company to fall by reporting losses and then selling the public company laden with expensive equipment and tools to a private wealthy recipient for a very low price. Profits from the privatization of such a corporation can be returned to the government in both cash and kind (support in elections and political campaigns).

Anyone who has watched Reliance Industries over the years knows that it negotiates a deal for supporting political parties, particularly during election season. And we all know, 2024 elections are coming up! Doesn’t it seem like a perfect opportunity for BJP Government to arrive at some sort of arrangement with Ambani in relation to BSNL?

According to a news article, BSNL had stated the following regarding Reliance Jio:

“It has been learnt that Reliance Jio has developed and deployed indigenously developed EPC (4G core) which is also upgradable to 5G. Possibility for partnering of any system integrator with Reliance Jio can be explored for deploying such core in BSNL network. The workability of such mechanism needs to be deliberated upon at the government of India level.”

Most successful scheme of BJP Government

The Bharatiya Janata Party (BJP) administration’s various programmes aimed towards regular Indians such as farmers, youth, women, and others have garnered a lot of attention from the government as well as a lot of criticism from the people for their failure.

However, there is one tremendously successful project of the BJP administration under PM Narendra Modi that received little media notice. This is the scheme to protect the interests and wellbeing of the country’s billionaires.

It is a known fact that, the Pradhan Mantri Employment Programme has not resulted in any new jobs. Under the BJP government, there is a net reduction of jobs. The Fasal Bhima Yojana benefited corporations more than kisaans (farmers), while Skill India provided no jobs to people possessing skills.

However, the success of the Billionaire Scheme outweighs the failure of the other programs. The effectiveness of this initiative is all the more amazing given that the government has never officially revealed it. We only know about the scheme’s existence because of the outcomes that it has produced. As a result, understanding and appreciating this plan is essential.

Billionaires who were already wealthy added additional billions to their wealth through this strategy. Those who weren’t doing so well received assistance so they could keep their fortune. A well-known example of this can be seen through the Adani-SEBI Scam.

One of the biggest beneficiaries of Modi Government- Ambani

Mukesh Ambani, became twice as wealthy in the very first 4 years of the Modi regime. Between 2014 and 2019, his fortune more than doubled, rising from around $23 billion to $55 billion. This implies Ambani amassed more fortune in the five years of BJP government than he did in the previous fifty-eight years of his existence prior to Modi becoming Prime Minister.

Without a shadow of a doubt, Ambani worked exceptionally hard over the previous five years to generate INR 122 crore each day. However, credit ought to be provided where it is deserved. He must admit that his billions would be considerably less if the BJP government’s initiatives had not been implemented.

This all started with Ambani’s September 2016 introduction of Reliance JIO. We all remember when JIO debuted with full-page newspaper adverts. PM Modi was the person sponsoring the JIO brand, and he featured in advertising wearing an outfit that was color matched to coordinate along the JIO symbol. The typical denials that the images had been utilized without the Prime Minister’s authorization were issued. However, most of us are aware that Reliance couldn’t have even attempted to publish Modi’s picture without some sort of prior agreement.

The hundreds of programmes introduced by the BJP administration appear to have provided little tangible benefit to the Indian people, with actual beneficiaries consisting of only a few billionaires.

On top of that, the generosity shown to millionaires has not gone unrecognized. With their money, the billionaires are already casting their votes. More than seventy percent of corporate donations made to national political groups throughout Modi’s presidency went to the BJP. Not to mention the extensive and entirely uncritical airtime Modi continues to be receiving in the commercial-owned media outlets.

Within the leadership of PM Modi, common Indians possess the chance to blossom into billionaires one after another, if they are willing refrain from yearning for meagre benefits such as job opportunities, minimum support prices, farm loan waivers, cost-effective medical care and schooling, cheap electricity, gas to cook with, and so forth.