The employee unions have strongly opposed the Pitroda-led panel’s suggestion for 30% stake dilution and voluntary retirement to nearly one lakh staff and they are planning for nationwide agitation against it beginning next week.

The employees argue that Government earlier had committed to the employees that there would be no divestment in the telecom PSU and now they are going against their words. Fifteen unions of BSNL will demonstrate in front of the telecom PSU`s offices across the country on 15th March, V A N Namboodiri, Convener of Joint Forum of Executives and Non-Executives Unions and Associations.

``We are planning to meet Prime Minister Manmohan Singh, Telecom Minister A Raja and others to register our protest against the Pitroda committee`s recommendations,`` Namboodiri said

On Wednesday BSNL’s board has agreed to go for 30% disinvestment in two-three stages. This is the third time the BSNL board clearing the stake sale. BSNL board has twice approved the proposal to divest 10% stake through IPO in the company but the move was shelved because of opposition from the employee unions. The stake sale was expected to raise about Rs 10,000 crore.

BSNL’s unions and employees are opposing the move citing the examples of MTNL and VSNL. Trade union representative says that post-listing, MTNL’s situation got bad and the name of VSNL has been changed.

The employee unions are also against the Pitroda-led panel’s suggestion that the telco cancel its 93-million lines GSM tender worth 10 million lines. Last week, following a string of controversies, the BSNL board had decided to cancel its $10-billion tender for 93-million GSM lines, the largest ever telecom equipment contract globally

According to Telegraph, BSNL has been losing market share to private entities because of its inability to add to capacity and execute projects in time. It has also scrapped a tender to procure mobile equipment for expansion. Its current market share is 12%. BSNL’s Profit dipped to Rs 500 crore in 2008-09 from over Rs 10,000 crore in 2007-08.