State-owned telecom agency BSNL has approached the federal government for Rs 40,000 crore monetary assist, half of which it wants within the type of sovereign assure to clear short-term debt.
BSNL Chairman and Managing Director PK Purwar instructed PTI that the corporate doesn’t want any further debt and its enterprise has develop into self-sustainable to assist the operations.
“We don’t want any further debt. We now have requested for Rs 20,000 crore sovereign assure to pay again our short-term debt and concern long-term bonds. We are going to want Rs 20,000 crore if we now have to arrange 1 lakh node B (cellular websites) for cellular community rollout,” Purwar stated.
The BSNL CMD confirmed that he has approached the federal government for assist, which is past the Rs 69,000 crore reduction bundle that was introduced in 2019.
At current, BSNL has a debt burden of Rs 30,000 crore which is without doubt one of the lowest within the telecom sector.
Purwar additionally heads MTNL, which is proposed to be merged with BSNL. The federal government has already issued a allow to BSNL to function cellular enterprise in Delhi and Mumbai which was earlier managed by MTNL.
The Appointments Committee of the Cupboard on Wednesday prolonged the extra cost of Purwar as chairman and managing director of loss-making telecom agency MTNL for a interval of 1 12 months until October 2022.
The federal government had supplied a mixed revival bundle of about Rs 69,000 crore to BSNL and MTNL in October 2019 that has helped each telecom PSUs in narrowing their losses.
In keeping with official knowledge, losses of BSNL have narrowed to Rs 7,441 crore in 2020-21 from Rs 15,500 crore in 2019-20.
MTNL reported a complete lack of Rs 2,554 crore for the final fiscal in comparison with Rs 3,811 crore in 2019-20.