NEW DELHI: Failure to monetize land assets and constant delays in 4G network rollout seems to have greatly impacted state-run Bharat Sanchar Nigam Limited<\/a> (BSNL<\/a>) as the parliamentary standing committee on IT has noted in a report that the telco won’t be profitable for another two years even though it is saving up to Rs 10,000 crore annually.
“The expenditure of BSNL has reduced from Rs. 34,400 crore per annum to Rs. 24,687 crore per annum (Annualized value of 9 months figures) mainly due to savings in employee benefits expense, due to VRS<\/a> [Voluntary Retirement Scheme] as part of revival package,” the Parliamentary Standing Committee on Information Technology said in its report tabled in the Lok Sabha and the Rajya Sabha on 10 March.
DoT in a report had said that BSNL has turned Ebitda positive for the first six months of the current fiscal year.
But the committee highlighted that the BSNL is expected to be “profitable from FY 2023-24” onwards.
But this is subjected to the “realisation of revenue and cash flow” from services as well as from land assets monetization as envisaged in the revival package introduced by the Central government in 2019.
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