Delay BSNL IPO by two years: Pitroda committee report

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A government panel has rejected the Sam Pitroda committee?s recommendation that Bharat Sanchar Nigam Limited (BSNL) sell 30 per cent stake by listing on the bourses, and said that the IPO must be delayed for two years to allow the operator to improve its performance and get the correct valuation. The Sam Pitroda committee was set up by the Prime Minister to suggest a turnaround strategy for BSNL.

It has also mooted the committee?s proposal to allow BSNL to bring in top professionals, including a chief executive officer from the private sector. The panel has also partially agreed with Pitroda committee?s recommendations that BSNL share its infrastructure with private companies to improve its revenue streams, launch a venture fund with its Rs 300 billion cash surplus and also hive its land bank into a separate company and monetise it.

Importantly, this panel has also accepted the Pitroda committee?s proposal that BSNL halt its equipment procurement process and adopt the ?managed capacity? model? followed by private operators.