BSNL disinvestment likely to be announced today

NEW DELHI, INDIA: Decision on disinvestment in Bharat Sanchar Nigam Limited (BSNL), public telecom company, is likely to be announced in the Union Budget today informed a senior official from the Department of Telecom.

“The decision on listing of BSNL will depend on announcement of this Union Budget as disinvestment announcements are part of union budget,” said DoT officer.

Earlier President Pratibha Patil in her, while addressing Parliament on June 4, had indicated to develop a roadmap for listing and people-ownership of public sector undertakings while ensuring that the government equity does not fall below 51 per cent.

In the 14th Lok Sabha, there had been stiff resistance from the Left parties against disinvestment, and trade unions were also against it. However, this time, since the UPA Government is not depending on the Left parties, it has more freedom to go ahead with disinvestment decision PSUs including BSNL.

Kuldeep Goyal, chairman and managing director, BSNL had indicated that he is waiting for the government nod to go ahead with the plan of disinvestment.

BSNL has earlier proposed to dilute 10 per cent of the government's equity holding through IPO to raise about $10 billion. The company had a paid up capital of around Rs.5,000 crore and generated revenues around Rs.333.59 billion in 2008-09.

BSNL had net fixed assets valuing more than Rs. 54698 crore (US$13.67 billion), which are in the form of land, buildings, cables, apparatus and plants as on March 31, 2008.

“Fresh valuation will be done once we are communicated government decision on listing of company,” said Goyal.