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BSNL may soon ask DoT for a bailout option, the operator's current bank deposit at Rs 8.40 billion

December 06, 2011
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Bharat Sanchar Nigam Limited (BSNL) is expected to shortly request the Department of Telecommunications (DoT) for a bailout option, say news reports.

The company is believed to be unable to meet its fund requirement towards capital expenditure this fiscal as its cash and bank balance currently stand at Rs 25 billion. Of this, BSNL has a bank deposit of Rs 8.40 billion, while the rest is in its current account and is being used to run its businesses.

A year ago, BSNL had cash reserves to the tune of Rs 303.434 billion.

Prior to this, BSNL had informed DoT that its losses would be limited to Rs 27.25 billion for the year-ended March 2011. Its losses have gone up by 350 per cent over the last 12 months.

 
 

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