Indian shareholders in UTL considering selling their stake

Indian share holders in UTL are considering selling their stake to Nepali Partner. According to a report published in THT Online, Indian shareholders are also reluctant to make further investment in UTL to take unified license. The government had dec

Jan. 8, 2015, 5:45 p.m. Published in Magazine Issue: Vol: 08 No. -13 December. 26- 2014 (Poush 11, 2071)

Indian share holders in UTL are considering selling their stake to Nepali Partner. According to a report published in THT Online, Indian shareholders are also reluctant to make further investment in UTL to take unified license. The government had decided to issue the license to UTL in April 2013.

Seeking anonymity, a senior official of the company said that amid loss in business and competition in telecom market in Nepal, Indian investors are willing to sell their stake to the Nepali partner reports THT online.

UTL has 80 per cent investment from Indian companies, including Indian government-owned Mahanagar Telephone Nigam Ltd. Nepali company — Nepal Venture — has 20 per cent investment in UTL.

United Telecom Ltd (UTL) has sought permission from the government to cut more than 60 per cent of its staff members. Citing financial loss and plan to revamp, UTL management has filed an application to downsize its workers in the Labour and Employment Office, Kathmandu.

The first private sector telecom company has altogether 102 staff, of whom, it is planning to send home 65 employees.

“We have received application seeking approval to cut staff from UTL,” said Uday Kumar Gupta, chief of Labour and Employment Office. He added that they are yet to take a decision on the request.

Weak financial condition and renovation plan of the company have been given as reasons behind its plan to cut staff.

With demands like salary hike of all employees by Rs 15,000, providing appointment letter to workers meeting criteria of 240 working days, overtime allowance, and increasing other allowances like travelling, daily and lodging allowances, the trade union of UTL had been in protest until recently.

The union has currently halted its protest programme as the Patan Appellate Court issued a stay order against the protest programme following a writ filed by UTL management.

Bikash Kumar Jha, president of the UTL Chapter of All Nepal Bank and Financial Workers Union, said that the management is trying to get rid of over 60 per cent of the staff by providing minimum allowance and then recruit new employees to take their place. He has accused the management of trying to remove the workers involved in the company since the last 10 years without any logical ground.

 

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