BSNL fails to retire Rs 7,500 cr govt loan: CAG report
State-run Bharat Sanchar Nigam (BSNL) failed to retire a government loan of Rs 7,500 crore despite having a cash-reserve of Rs 18,829 crore as on March 2005, leading to an excess expenditure of Rs 1,089 crore on interest payment during 2005-07. - Sterlite Technologies wins Rs 372 cr BSNL contract - Fin Min-led GOM to handle 3G spectrum issues - BSNL to provide bandwidth for SWAN - BSNL mulls stake sale to foreign investor - Budget may give revenue targets from BSNL listing, 3G auction - BSNL, MTNL drop '95' group dialling across the country "BSNL failed to retire government loan of Rs 7,500 crore inspite of having adequate cash reserves of Rs 18,829 crore as of March 2005 parked in bank deposits with average rate of return of 6.19 to 7.38 per cent per annum against the rate of interest of 14.50 per cent for the loan, the CAG report on Telecom sector tabled in the Parliament today said. "This imprudent financial management resulted in excess expenditure of Rs 1,089 crore on interest payment," it added. BSNL, created in October 1, 2007, had received all assets and liabilities of the previous telecom units like Department of Telecom Services (DTS) and Department of Telecom Operations (DTO) at a provisional value of Rs 63,000 crore, including government of India loan of Rs 7,500 crore. The loan was for a period of 15 years, with repayment of principles in equal annual installments and interest at government prevalent lending rate of 14.5 per cent.Bad Credit Loans commented:
This is because that they have not taken care of the things that’s why they have not been able to control the finances
19.08.2011
Payday Loans commented:
If they have been careful in their finances then there wont be these problems for them
24.08.2011
Compare payday loans commented:
BSNL has 8.30 workers for every 1,000 telephone subscribers in 2003 which has now improved to 4.26 in 2007-08. This is due to a reduction in workforce from 3.45 lakh employees in 2003-04 to 3.08 lakh in 2007-09.
23.09.2011
Family Office commented:
Stating that a part division might be fixed out for the infrastructure sharing business, Goyal believed that the talks with operators might get materialised with telecom licence holders by September this year that would give additional revenue of Rs 100 crore to BSNL.
10.10.2011
Payday Advances commented:
Though BSNL had cash reserves it failed to retire the government loan of 7500 cr. It shows the manner in which these government companies work
18.10.2011
car rental Singapore commented:
BSNL is taking the decision with wise approach, they will succeed I think. You have shared a good information.Thanks for such post.
03.11.2011
Australian Property Finance commented:
I think BSNL is not making profit anymore and their business have been ruined by these private companies.Thanks for posting the blog.
26.11.2011