CorporateRaja to review BSNL's financial performance, IPO plans
The government will take stock of Bharat Sanchar Nigam"s (BSNL) poor financial showing - wherein net profit fell to Rs 104 crore in FY09 compared to over Rs 3,000 crore a year ago - and also talk to the management for selling government stake in the telecom company.
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Telecom Minister A Raja has convened a review meeting of BSNL tomorrow, top ministry sources said, adding that the agenda includes listing and disinvestment in the telecom PSU.
When contacted, BSNL Chairman and Managing Director Kuldeep Goyal said: "Increased expenditure due to implementation of sixth pay commission and falling revenues from landline operations resulted in a dip in net profit."
Sources said this was the right time for offloading equity in BSNL as the government can get good value, besides bringing in private or foreign company to manage operations of the PSU more efficiently.
The income of BSNL in 2008-09 stood at Rs 34,937 crore, the government had informed Parliament last week.
The government cited higher staff costs - upward revision of pay and merger of 50 per cent IDA with the basic pay - for fall in profit, besides decline in income from services.
Revenue from basic services dipped by 20.65 per cent in 2008-09 to Rs 11,505 crore from Rs 14,499 crore in 2007-08.