BSNL in Loss.

BSNL's loss may top Rs 3,500 cr, says House panel
Our Bureau
New Delhi, April 21

State-run telecom major Bharat Sanchar Nigam Ltd could register a loss of Rs 3,641 crore in 2009-10 according to a document prepared the Parliamentary Standing Committee on IT.
BSNL has so far reported profits in the past years.
The Department of Telecom in a submission has said the reason for the loss is the potential incidence of payment of arrears amounting to Rs 3,600 crore to non-executive employees with effect from July 2007.
Major reasons
Another major reason for the potential loss is the income coming under pressure due to reducing tariffs in highly competitive market, sharp reduction in landline revenue, stoppages of licence fee revenue, among others.
The financial results of the company are yet to be announced. The Standing Committee has, however, not accepted the reasons like non-finalisation of orders, non-timely supply of equipment, reducing tariffs in highly competitive market, sharp reduction in landline revenue, stoppage of licence fee reimbursement, lower returns on investment.
The panel noted that private service providers are making profits despite operating in the same market.