BSNL Sees Leadership Shift as CMD Purwar Denied Extension, Robert Ravi Assumes Charge

The government has decided not to extend the tenure of BSNL Chairman and Managing Director P K Purwar. Instead, Robert J Ravi, a senior officer from the Department of Telecom, has been given the charge, according to official sources. Purwar, who took over as BSNL CMD in July 2019 for a five-year term, had sought an extension which was denied by the Department of Telecom.

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During Purwar's leadership, the government introduced three revival packages worth over Rs 3 lakh crore to help BSNL compete with Reliance Jio and Airtel by rolling out 4G and 5G services. The first package, approved in October 2019, amounted to Rs 69,000 crore, with around Rs 51,000-52,000 crore allocated to BSNL. This package aimed to fund a voluntary retirement scheme, purchase 4G spectrum, and restructure debt.

Revival Packages and Financial Support

In 2022, a second revival package worth Rs 1.64 lakh crore was approved for BSNL-MTNL. This package provided financial support for capital expenditure, viability gap funding for rural landlines, financial aid for de-stressing the balance sheet, settlement of AGR dues, and the merger of BBNL with BSNL. The third revival package, approved in June 2023 with a total outlay of Rs 89,047 crore, supported the allotment of 4G/5G spectrum through equity infusion.

Despite these efforts, BSNL has only managed to roll out 4G services in the Punjab circle. The company has been tasked with deploying 4G and 5G using indigenous technologies. A consortium led by Tata Consultancy Services and state-run C-DoT has secured the project for rolling out these services using locally developed technologies.

Challenges Ahead for New Leadership

Robert J Ravi will now face the challenge of accelerating the rollout of 4G services and halting the decline in BSNL's subscriber base. Ravi is an Indian Telecom Service officer with 34 years of experience in the telecom sector. This will be his second stint at BSNL; he previously served as an additional general manager at the state-run firm for about six years.

During Purwar's tenure, BSNL's mobile subscriber share dropped from 9.98 per cent in July 2019 to 7.46 per cent as of April 2024. The company's mobile subscriber base also fell from 11.64 crore in July 2019 to 8.6 crore in April 2024. Purwar had announced plans to roll out pan-India 4G services by June 2024 but failed to meet this timeline.

An Appointment Committee of Cabinet (ACC) order stated that it approved the Department of Telecom's proposal not to extend Purwar's tenure beyond July 14. The ACC also approved giving Ravi additional charge as CMD BSNL along with CMD MTNL and CMD BBNL from July 15, 2024, until January 14, 2025, or until further orders.

Purwar was also given charge of MTNL during his tenure. Despite receiving substantial financial support through various packages aimed at reviving BSNL and MTNL, significant challenges remain for Ravi as he takes on this new role.

Ravi's extensive experience in the telecom sector will be crucial as he navigates these challenges and works towards stabilising BSNL's operations and subscriber base.