BSNL cash reserve declines to Rs 2,500 crore in 2011 from Rs 30,000 crore two years ago

Telecom Lead India:
Last year’s annual results raise worries of the cash-strapped state-owned
telecom provider BSNL, as its cash reserve dwindled to Rs 2,500 crore in 2010-
2011 from Rs 30,000 crore two years back.


In a written reply, telecom Minister Kapil Sibal told Lok
Sabha, As per the audited books of account, cash reserve of BSNL has gone down
from Rs 30,343 crore as on March 31, 2010 to Rs 2,500 crore on March 31, 2011.”


Payment of Rs 18,500 crore towards 3G spectrum and
broadband wireless access (BWA) spectrum auction price and payment of Rs 5,301
crore to LIC towards group leave encashment scheme, were the main reasons
attributed for the sharp decline.

Payment of Rs 2,900 crore on implementation of revised pay scale and Rs 392
crore in tax liabilities also added to the burden of the telecom firm, he


Sibal said that stiff competition from private operators
and decreasing average revenue per user accounted for decline in revenues,
while increased expenditure resulted from large legacy work force whose wages
accounted for 50 per cent of the revenue.


He added the government is taking various steps to
improve the financial health of the company, according to media reports.

Recently, BSNL
has posted 8 percent decrease in revenue to Rs 29,688 crore in 2010-11 against
Rs 32,045 crore in the previous fiscal, according to results posted on BSNL’s


Capital expenditure for cellular during the period was
Rs. 8138 crore.


The company’s net loss has gone up to Rs 6,384 crore in
2010-11 from Rs 1,822 crore in 2009-10. Loss before tax was Rs 6,578 crore in
2010-11 as compared with Rs 2,197 crore. Decline in revenue and increasing
expenditure resulted in losses for BSNL.


Income from services was Rs 27,044 crore in 2010-11
against Rs 27,913 crore.


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