IT refund and reduction in operational costs likely to help BSNL reduce its losses

Bharat Sanchar Nigam Ltd (BSNL) is likely to reduce its annual losses in 2012-2013 to about Rs 81 billion with an income tax refund and reduction in operational costs, says news reports.

The company is expected to lower its yearly losses, with an income tax refund of Rs 9 billion and a 5 per cent reduction in operation and maintenance and administration costs.

To help BSNL achieve this, a Group of Ministers in charge of reviving the operator is considering taking over BSNL?s entire debt and waive off its licence fees and spectrum charges for three financial years. The Ministerial Group is also considering allowing the service provider to surrender bandwidth in few of the circles and to refund – totally or on a pro-rata basis – the fees paid by BSNL for acquiring broadband spectrum.