The department of telecommunications (DoT) has proposed that Bharat Sanchar Nigam Ltd (BSNL) should be taken out of the purview of the Public Enterprise Selection Board (PESB) in respect of selection and salaries of the board and higher level of management.

DoT wants to restructure the BSNL board with chairman from private sector. This is not possible as BSNL chairman and managing director (CMD) gets a salary less than Rs 20 lakh per annum. CEOs in the private telcos get salaries ranging between Rs 4 crore to Rs 6 crore per annum.

Sources said that the DoT will seek full telecom commission’s approval in a meeting to be held in the first week of May. Full telecom commission is the final decision making body in telecom and comprises secretaries of ministry of finance, industry and Planning Commission.

“This has never happened in India. It will require prime minister’s approval,” said a senior official in DoT.

BSNL is 100% owned by the government. In India, selection of the board and their financial emoluments are governed by the PESB.

Sam Pitroda committee had recommended appointment of an eminent person from private sector as chairman. He should have strategic vision and capability to interface with the external world.

Pitroda has also proposed separating the post of managing director/CEO and chairman. CEO should have experience form the relevant domain. Higher management would include COO, CFO, CIO and CTO. All of them would report to CEO.

The committee has also recommended that a three year contract should be signed with all the key members (30 – 40) and they should be given stock options.

It is not clear that who will be responsible for selection of chairman and CEO of the company.