BSNL pays Rs 1200 cr dividend to govt

NEW DELHI, INDIA: State-owned telecom player Bharat Sanchar Nigam Ltd (BSNL) today gave a dividend cheque of Rs 1200 crore to the India Government. BSNL chairman and managing director Kuldeep Goyal handed over the cheque to Union Minister of Communications and IT A. Raja in New Delhi, said a press release.

The payment of Rs. 1200 crore comprises Rs. 525 crore as dividend on equity capital and Rs. 675 crore as dividend on preference capital for the financial year 2007-08.

This is in addition to Rs. 300 crore interim dividend already paid to the Government Exchequer by BSNL on equity capital thus making the total contribution of Rs. 1500 crore on account of dividend.

As per the financial results approved at the eighth annual general meeting of BSNL, it has earned a total income of Rs. 38,053 crore during 2007-08. Profit after tax amounts to Rs. 3009 crore despite sharp reduction in the Access Deficit Charges (ADC) payable to BSNL on account of below the cost operations in the rural and remote areas.

BSNL is one of the largest contributors to Government exchequer in 2007-08 by contributing more than Rs.14,000 crore in the form of dividend, licence fee, corporate tax, service tax including repayment of notional Government loan of  Rs. 3000 crore, the release added.

The company made this payment despite carrying out various social obligations such as provision of telephones to rural, tribal and remotely located inaccessible areas.

BSNL has provided more than 1.48 crore telephones in rural areas and provided 5,22,120 Village Public Telephones spread across the country. It is providing telecom services to all at affordable prices and playing the pivotal role in bridging the digital divide in the country.