It is believed that the Department of Telecommunications (DoT) may review the performance of Mahanagar Telephone Nigam Limited (MTNL)?s officials on a monthly basis to help the incumbent stem losses.
In 2010-11, the company?s total income rose to Rs 38.41 billion, against Rs 37.81 billion in 2009-10. However, the company posted a net loss of Rs 28.26 billion, from Rs 26.10 billion in the same period in the previous year.
In view of these losses, DoT has decided to transfer officials who do not achieve revenue targets.
Profits from the company?s mobile service business have also declined. In 2010-11, the company?s loss in this segment increased more than 10-fold from a profit margin of Rs 0.34 billion to losses of Rs 3.46 billion.
Meanwhile, the company had decided to restructure the Rs 70 billion loan it took to purchase 3G and BWA spectrum in 2010. The company has restructured Rs 35 billion of debt, repaying Rs 5 billion and tying up with two state-run banks for the rest.
