Sunday, March 23, 2008

BSNL repays Rs 3,000-cr Govt loan

Bharat Sanchar Nigam Ltd (BSNL) has paid Rs 3,000 crore to the Government as repayment of notional loan of Rs 7,500 crore.

This notional Government loan was transferred to BSNL as a part of capital structure without any additional cash inflow from the Government at the time of corporatisation of erstwhile Department of Telecom Services.

BSNL has already paid a sum of Rs 2,000 crore and Rs 2,500 crore as repayment of loan in the year 2005-06 and 2006-07, respectively. BSNL has also paid an interim dividend of Rs 300 crore in the current financial year to the Government.

“BSNL is one of the largest contributors to Government exchequer in 2006-07 by contributing more than Rs 12,800 crore in the form of dividend, licence fee, corporate tax, service tax, repayment of loan and so on. In the current financial year 2007-08, BSNL is estimated to contribute more than Rs 13,000 crore to the Government exchequer.

“In the last five years, BSNL has contributed more than Rs 50,000 crore in the form of various levies, duties, taxes despite carrying out various social obligations such as provision of telephones to rural, tribal and remotely located inaccessible areas,” said a press release.

The company is proposing to make investment of more than Rs 10,000 crore for expansion of telecom network in the current financial year.

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