Govt puts BSNL listing on hold

CIOL Bureau
New Update

NEW DELHI, INDIA: The much-awaited decision on the listing of state-run Bharat Sanchar Nigam Limited (BSNL), has been delayed again due to the company’s mounting losses and high payout for 3G spectrum.


The government has now decided to postpone the planned initial public offering (IPO) till the company swings back to profit. The development comes after the state-run PSU recently posted huge loss in 2009-10. Since the bid price of 3G spectrum and BWA spectrum were higher than expected, both BSNL and MTNL had taken loan to make the payment. Though BSNL and MTNL had begun 3G services earlier, it is yet to bring returns.

Adding to the woes of BSNL, the employees' unions are still opposed to the IPO plan. Unless the financial performance of BSNL improves, the department is unlikely to go ahead with the listing plans for the telecom PSU.

On the other hand, in order to give the status of 'Navratna' to BSNL, it has to be listed and also it should become profit making, which means BSNL is not likely to get the Navratna status in near future.

In an effort to revive the company, a committee was set up under Sam Pitroda, which made many suggestions including 30 per cent disinvestment in phases. However, employees are opposed to this. In order to consider these suggestions, the Full Telecom Commission Meeting called by the Department of Telecommunications (DoT) had decided to set up a special committee as well.