Monday, March 29, 2010

The state owned telecom company BSNL is likely to lose Rs. 36.41 billion this fiscal. Since independence this company had monopoly rights all over India except Delhi and Mumbai which are served by another state company, MTNL. With the opening of the telecom sector to private companies BSNL is unable to compete because of its culture of poor service and low productivity. I have a BSNL broadband connection. After many phone calls I agreed to television content over their broadband connection and paid a deposit. However, their set top box did not match the modem supplied by them and they refunded the deposit. It did not occur to them to change the modem to a compatible one. Meanwhile another state owned company Air India is postponing the payment of March salaries to April 7 because they are bankrupt. Again it is overmanned, the workers are unproductive, there is huge corruption and the unions know that they can blackmail the government because politicians are terrified of job losses. However, Air India is not alone in financial difficulties. Most airlines in India have huge accumulated losses. This is because of sky high taxes on airlines and aircraft fuel. The situation is similar to that of oil companies which are accumulating losses because the government will not allow them to sell petrol at market prices choosing to levy nearly 100% taxes instead. Thus the people of India continue to be looted by criminal politicians and thieving uncivil servants. Mother India is having her life blood sucked out by parasites. Nothing she can do.

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