As per the data shared by the Ministry of Communications and IT, state-owned Mahanagar Telephone Nigam Limited (MTNL) has recorded profits of Rs 78.25 billion during 2013-14, after recording losses for several years. The operator had last posted annual profit of Rs 2.11 billion in 2008-09. During 2012-13, MTNL had recorded losses of Rs 53.21 billion.
The turnaround in MTNL?s profitability during 2013-14 can be attributed to some write back provisions on account of pensionary liabilities and spectrum amortisation costs. The government in January, 2014 had approved refund of Rs 45.33 billion to MTNL for surrendering the broadband wireless access spectrum in select circles. Further, the government had approved pension support for MTNL.
Meanwhile, BSNL has reported a loss of Rs 70.85 billion in 2013-14. This is lower than Rs 78.84 billion loss recorded in 2012-13.
Over the years, the continuous losses of the two telecom companies has led to the government undertaking several short, medium and long term revival measures. One of the key long term measures include merging the two entities. Currently, three groups appointed by government are conducting in-depth study on implications of merger of the two PSUs with regard to the impact on human resource, technology and corporate integration.
