DoT revenue could drop by Rs. 2,000 cr

BANGALORE: Department of Telecom (DoT) has estimated a 10 per cent revenue

shortfall of Rs 2,000 crore in its operations for the fiscal ending March 31,

2000.

DoT secretary Shyamal Ghosh said that a revenue shortfall of Rs 1,755 crore

has been accounted for the 10 months ending January 31 from the department.

Going by the current trends, the shortfall for the last two months could take

the total figure to over Rs 2,000 crore. This would take the total revenue from

operations to less than Rs 19,000 crore, official sources said.

This is against the Rs 520 crore excess revenue generated during the year

ending 1998-99. Against the projected revenue of Rs 18144.36 crore for the last

fiscal, DoT had generated a revenue of Rs 18564.68 crore. DoT officials

attributed the reason for the shortfall in revenue for the current fiscal to the

new telephone tariff implemented from May last.

The shortfall is likely to impact the telecom capital reserve fund, which is

the transfer of a substantial part of the surplus of the department and is being

used to meet plan expenditure on capital account, sources said. Credits to the

fund was projected as Rs 8,963.76 crore for the fiscal ending March 31, 2000

with a withdrawal of Rs 8,935.22 crore.

The entry of private telecom operators in some circles did not have any

impact on the total revenue, DoT officials said quoting figures from Madhya

Pradesh circle. Bharti Telenet had launched its telephone services in this

circle during the current fiscal and going by these trends, the finance ministry

is likely to bring down the revenue estimates of the department in the

forthcoming budget, below the Rs 20,000 crore level, sources said.

However, since the exact figures on account of the proposed revenue sharing

agreement with private telecom operators have not yet been worked out, it would

be difficult for the finance minister to work out the revenue projections of the

department in his budget, sources said. The Telecom Regulatory Authority of

India (TRAI) is yet to give its opinion on the final revenue sharing pattern

between the operators and the government. This opinion could be delayed since

the new regulator is yet to be in place after the recent reconstitution.