Bharat Sanchar Nigam Limited plans to link future fund allocations for all 24 circles to the realisation of specific revenue targets in financial year 2011-12.
In an internal communication, R.K. Upadhayay, CMD, BSNL has asked all circle heads to expand the business and achieve a minimum of 25 per cent revenue growth this fiscal. A circle that misses revenue growth targets will be branded a non-performer and will not be given its monthly funds allocation.
Under the new strategy, BSNL’s circles have been divided into three revenue-wise categories, those with less than Rs 10 billion revenue, those with Rs 10-20 billion revenue and circles with revenues in excess of Rs 20 billion.
The company?s revenues have declined over the past five years. In 2005-06, it had notched up revenues of Rs 401.77 billion. Thereafter, it fell to Rs 320.45 billion in 2009-10, when the operator?s losses further declined to Rs 18.23 billion.
