JOIN USTelecom Minister A Raja has convened a review meeting of BSNL tomorrow, top ministry sources said, adding that the agenda includes listing and disinvestment in the telecom PSU.
Sources said this was the right time for offloading equity in BSNL as the government can get good value, besides bringing in private or foreign company to manage operations of the PSU more efficiently. The income of BSNL in 2008-09 stood at Rs 34,937 crore. The government cited higher staff costs — upward revision of pay and merger of 50 per cent IDA with the basic pay — for fall in profit, besides decline in income from services.
Revenue from basic services dipped by 20.65 per cent in 2008-09 to Rs 11,505 crore from Rs 14,499 crore in 2007-08. BSNL’s valuation has been pegged at about US$100 billion and sale of 10 per cent stake may fetch the government US$10 billion (about Rs 48,000 crore).