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BSNL fails to retire Rs 7,500 cr govt loan: CAG report

State-run Bharat Sanchar Nigam (BSNL) failed to retire a government loan of Rs 7,500 crore despite having a cash-reserve of Rs 18,829 crore as on March 2005, leading to an excess expenditure of Rs 1,089 crore on interest payment during 2005-07. - Sterlite Technologies wins Rs 372 cr BSNL contract - Fin Min-led GOM to handle 3G spectrum issues - BSNL to provide bandwidth for SWAN - BSNL mulls stake sale to foreign investor - Budget may give revenue targets from BSNL listing, 3G auction - BSNL, MTNL drop '95' group dialling across the country "BSNL failed to retire government loan of Rs 7,500 crore inspite of having adequate cash reserves of Rs 18,829 crore as of March 2005 parked in bank deposits with average rate of return of 6.19 to 7.38 per cent per annum against the rate of interest of 14.50 per cent for the loan, the CAG report on Telecom sector tabled in the Parliament today said. "This imprudent financial management resulted in excess expenditure of Rs 1,089 crore on interest payment," it added. BSNL, created in October 1, 2007, had received all assets and liabilities of the previous telecom units like Department of Telecom Services (DTS) and Department of Telecom Operations (DTO) at a provisional value of Rs 63,000 crore, including government of India loan of Rs 7,500 crore. The loan was for a period of 15 years, with repayment of principles in equal annual installments and interest at government prevalent lending rate of 14.5 per cent.

Loans next day commented:

Hoping BSNL will get in bond with SWAN and will yield out of debt and earn good profits. You have shared an updating news. Thanks for such post.

21.10.2011

Wonga commented:

I am also a user of BSNL telecom services and I am feeling sad to know that they failed in retiring such loan inspite of having adequate cash. It is giving an indication that they are now focussing on some big goals .

06.01.2012

payday loans with bad credit commented:

this information is totally unique and other best thing is that the entire information is based on reality. Nice peice of work. I really appreciate the post

29.02.2012


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