Government starts search for new MTNL CMD

New Delhi, Jul 29 () After a gap of two years, government has started search for the new head of loss-making telecom PSU MTNL.
"The Government of India has constituted a search-cum- selection committee under the chairmanship of Chairman, PESB for appointment to the post of CMD, MTNL on deputation basis for a period of five years," according to a notice.
The telecom PSU has been without a full-time CMD since May 30, 2014, when A K Garg retired from the post.
Selection 'on deputation' basis opens up the eligibility for government officers in any department who can also go back to their service after their tenure.
MTNL Senior Executive Association General Secretary Rajendra Prasad said, "A person who does not have any stake in MTNL will not feel pain of the company. Anybody can apply, stay here till the time he feels good and then go back to his cadre as there is no absorption as per the rule."
P K Purwar, the Director (Finance) of MTNL, had earlier held the additional charge between June 2014 and June 2015 and is holding the post again as additional charge.
Narendra Kumar Yadav, a Member (Services) Department of Telecom, was been given the additional charge of CMD on June 8, 2015 and as per rule he relinquished the post a year after.
The company decided network expansion when Garg was CMD. A tender estimated to be around Rs 400 crore was floated but the company later on shelved off that project.
Due to shortage of equipment, network quality of MTNL has deteriorated sharply. In drive test conducted by telecom regulator, the state-run firm failed badly on call drop parameters.
The PSU posted a consolidated net loss of Rs 2,012.24 crore for year ended March 31, 2016, against that of Rs 2,901.16 crore at the end of March 2015.
The telecom firm, however, expects to post operational profit at the end of the current financial year and turn profitable in 2017-18. PRS MR