BSNL cash reserves plunge 96% in 2 yrs to Rs 1,214 cr
New Delhi: State-owned telecom major BSNL's cash reserves declined by a whopping 96 percent to Rs 1,214.44 crore in 2011-12 from Rs 29,355.5 crore 2009-10.
The company had a cash reserve of Rs 29,355.5 crore in 2009-10 fiscal, which declined to Rs 1,733.35 crore in 2010-11 and further slipped to Rs 1,214.44 crore in 2011-12, Minister of State for Communications and Information Technology K Kruparani said in a written reply to the Lok Sabha.
The loss-making company has drawn a blueprint to monetise its vast real estate as well has hiving off its tower arm over the next five years to increase revenues.
The proposals include utilisation of its real estate, monetising of towers assets, utilisation of its factories for revenue generation, providing broadband connectivity to schools and leasing out its CDMA network.
Telecom Minister Kapil Sibal has asked BSNL to submit plans that will help the company turn profitable.
BSNL's losses have more than tripled to Rs 5,997 crore crore during 2010-11. The company had registered a net loss of Rs 1,823 crore during 2009-10.
In real estate, BSNL has about 4,400 hectare of total land bank. It also has seven telecom factories, where it plans to set up manufacturing facilities of electronic equipment in partnership with other manufacturers.