Bharat Sanchar Nigam Limited (BSNL) reported a loss of Rs 390.89 billion during the quarter ended December 2019. The telco’s losses have widened by over 2.5 times as it had recorded a loss of Rs 149.04 billion in the previous financial year of 2018-19.
Earlier on October 23, 2019, the government had approved a revival package worth Rs 687.51 billion for loss-making BSNL and Mahanagar Telecom Nigam Limited (MTNL).
The package includes raising of Rs 150 billion worth of sovereign bonds to meet the immediate capital requirement of both the companies, 4G spectrum allocation worth Rs 201.4 billion; Rs 299.37 billion for VRS covering 50 per cent of their employees; and Rs 36.74 billion for goods and services tax that will be levied on the allocation of radio waves.
Further, the government had also given approval to the merger of BSNL and MTNL. until the merger process is completed, MTNL will operate as a subsidiary of BSNL.