Sibal
effect: Select BSNL circles post revenue growth
Press
Trust of India / New Delhi July 10, 2011, 12:36
IST
Within a month of Telecom Ministry reviewing performance
of loss-making PSU BSNL, some circles, including
Maharashtra and West Bengal, have started showing
improvement.
"Out of the 24 circles a few of the circles have already
started showing good performance on gross revenue basis
between the range of 14% to 18%. West Bengal is showing a
growth of 18%, Maharashtra is giving returns of 15.5%, and
Orissa and UP areshowing growth of 14%," a senior DoT official
said.
Earlier
Telecom Minister Kapil Sibal had said that the organisation
must have targets for circles according to which if the
officials don't perform, they will be transferred out
while those who meet the targets will be rewarded, like given
a posting of their choice.
Department of Telecom (DoT) started reviewing performance
of all 24 circle heads of the service provider on monthly
basis, after a decision to adopt revenue monitoring criteria
for reviewing a commercial organisation like BSNL.
BSNL provides telecommunications and related services in 20
of the country's 22 telecom service areas. The PSU, once
the country's flagship telecom company and which posted a net
profit of over Rs 10,000 crore in 2005-06, reported a net loss
of Rs 1,823 crore on revenue of Rs 32,046 crore in
2009-2010. It is also likely to report losses for
the financial year ended March
2011.
"Still there are
circles, including Uttaranchal, North East, Punjab and
Haryana, which are still not performing well and they
have to tighten up their belts or else be ready to face
the music," the official added.
In terms of mobile subscribers, BSNL has been relegated to
the fifth position from the second rank it held just a
few years ago since the company has failed to match
the competition from private players like Bharti,
Vodafone, Idea and Tatas.
Earlier, DoT had instructed BSNL directors in all the 22
territorial circles to mop up monthly revenues by 25%,
failing which strict action will be taken against
them.
Under the revenue
maximisation strategy, BSNL's circles have been divided
into three-revenue wise categories, including those with
less than Rs 1,000 crore revenue, those with Rs
1,000-2,000 crore revenue and circles with revenues in excess
of Rs 2,000 crore.
The
company in its projection to Board for Reconstruction of
Public Sector Enterprises (BRPSE) had informed that it
expects to turn profitable in the fiscal ending
March 2013, but projects a net loss for 2010-11 and the
ongoing year that began on April
1.
It expects a net loss of Rs
2,725 crore on revenue of Rs 31,738 crore in the
fiscal year ended March 31, 2011. In 2011-12, the loss is
expected to narrow down to Rs 623 crore on revenue target
of Rs 36,569 crore.
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