NEW DELHI: State-owned
BSNL, which is fast running out of cash to pay employee salaries, is
looking to raise over Rs 12,000 crore long term loan, as it has depleted
its reserves and desperately requires finding to meet upcoming capital
and operating expenditures.
Executives in BSNL management admitted that the company was looking at banks to offer the PSU a lifeline, but denied reports that it had appointed SBI Capital Markets to arrange the loans.
ET had reported last month that BSNL, that was sitting on cash pile of over Rs 40,000 crore till March 2008, and was using its interest income to buttress its profits, may soon be forced to seek a government bailout to survive.
The telco is also learnt to have asked the government to fast track the process of refunding it about Rs 8,000 crore as the telecoms department had approved its plan to surrender its wireless broadband access spectrum in most circles. In the interim period, the telco wants a one-time grant equivalent to this amount to pay for its GSM tender for 14 million lines, expand its 3G offering and meet employee wage bills.
BSNL-seeks-over-rs-12000-cr-loan-for-survival economic times.
Executives in BSNL management admitted that the company was looking at banks to offer the PSU a lifeline, but denied reports that it had appointed SBI Capital Markets to arrange the loans.
ET had reported last month that BSNL, that was sitting on cash pile of over Rs 40,000 crore till March 2008, and was using its interest income to buttress its profits, may soon be forced to seek a government bailout to survive.
The telco is also learnt to have asked the government to fast track the process of refunding it about Rs 8,000 crore as the telecoms department had approved its plan to surrender its wireless broadband access spectrum in most circles. In the interim period, the telco wants a one-time grant equivalent to this amount to pay for its GSM tender for 14 million lines, expand its 3G offering and meet employee wage bills.
BSNL-seeks-over-rs-12000-cr-loan-for-survival economic times.
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