Monday, October 7, 2013

Rs. 150 billion package?

http://www.tele.net.in/contract-and-orders/item/13050

Therefore, reviving BSNL has become a priority for the government. In April 2013, Kapil Sibal, minister for communications and IT, requested Prime Minister Manmohan Singh to form a committee for recommending revival strategies for the state-run operator. In his letter, Sibal stated that BSNL’s loss is estimated to have reached Rs 100 billion during 2012-13.
Subsequently, a group of ministers (GoM) headed by P. Chidambaram was constituted, which is considering a Rs 150 billion bailout package for BSNL. This would include taking over the company’s debt, waiving licence fees and spectrum charges for three financial years, and allowing BSNL to surrender its broadband wireless access (BWA) spectrum in six circles and refunding the amount to the operator.
BSNL is optimistic about a turnaround after 2018 if it receives the financial assistance. While industry experts are not sure about this, it could be the operator’s only shot at changing its course.

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