BSNL asks DoT for a Rs 40 billion subsidy to meet operational costs

Bharat Sanchar Nigam Limited (BSNL) has asked the Department of Telecommunications (DoT) for a subsidy of Rs 40 billion for the current fiscal year to meet operational costs.

It is believed that the operator requires the subsidy to support a large chunk of rural services, which are not commercially viable for it.

BSNL’s current subsidy period will end in July 2011. The operator reported a net loss of Rs 18.23 billion on revenues of Rs 320.46 billion in 2009-2010.

Prior to this, the Board for Reconstruction of Public Sector Enterprises (BRPSE) had recommended that BSNL should merge with Mahanagar Telephone Nigam Limited (MTNL) to stem losses.