BSNL's loss triples to Rs 6,000 cr on 3G, BWA outgo

Widening of the losses is mainly on account of payment made to the Government to procure 3G and BWA licenses; paid a total of Rs 18,500 crore for both

PTI | September 22, 2011



State-run BSNL's losses have more than tripled to about Rs 6,000 crore during 2010-11 mainly due to hefty outgo for employees' salary and expenses borne by the PSU for procuring 3G and BWA spectrum.

The company had registered a net loss of Rs 1,823 crore during 2009-10. According to the unaudited results of the company, the loss for 2010-11 is Rs 5,997 crore.

"The reason for widening of the losses is mainly on account of payment made to the Government to procure 3G and BWA licenses. The company had paid a total of Rs 18,500 crore for both," a senior BSNL official said.

This resulted in loss of other income of close to Rs 4,000 crore during the year gone by. BSNL had demanded refund of this money but denied by the Finance Ministry. The total revenues of the company also declined to Rs 28,876 crore during the year, down nearly 10 per cent from Rs 32,072 crore in the previous financial year.

"More than 47 per cent of the total income of the company goes for the payment made to the BSNL's employees," the official said indicating the PSU may resort to voluntary retirement scheme to trip its workforce in line with recommendations made expert committee.

BSNL had reported the highest net profit of over Rs 10,000 crore in 2005-06 but since then its profits have been falling and in 2009-10 it reported net losses. The company is preparing a voluntary retirement plan to employees as part of its efforts to revive the loss-making company.

The company has set an internal target of 99,700 employees - comprising Group A (1,483), Group B (6,262), Group C (76,655) and Group D (15,214) staffers.

The VRS has been under discussion since 2009 when a panel headed by Sam Pitroda, adviser to the Prime Minister on Public Information Infrastructure and Innovations, advocated that BSNL take the VRS route to prune its nearly 2.77 lakh strong workforce by a third.

BSNL's liability for the proposed VRS is pegged at a modest Rs 2,700 crore, while the telecom department will shoulder nearly Rs 18,000 crore.

The Department of Telecom is already examining the feasibility of merging government telecom companies ITI and MTNL with state-run BSNL, in line with the recommendations of the Board for Reconstruction of Public Sector Enterprises (BRPSE).

BSNL, which offers telecom services in all areas of the country, barring Delhi and Mumbai, had 95.14 million mobile subscribers as of July 31. it is making efforts to catch up with its private counterparts.

Comments

 

Other News

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Cabinet approves viability gap funding to develop grid-scale energy storage systems

The Union Cabinet, chaired by PM Narendra Modi, has approved the Viability Gap Funding (VGF) Scheme for Development of Grid-Scale Energy Storage Systems, with a total financial support of Rs.14,500 crore for the period FY 2026-27 to FY 2030-31. The scheme aims to support the development o

Cabinet creates a pathway to absorb Agniveers in Defence Forces

An objective assessment in terms of organisational requirements and operational efficiency has brought out the outstanding performance of Agniveers in terms of skills, motivation levels, physical fitness and technological prowess. As envisaged earlier, based on merit, 25% of Agniveers will be offered reg

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter