BSNL Repays Rs.3000 Crore Government Loan
By CXOtoday Staff
Mumbai, Mar 11, 2008

Kuldeep Goyal, chairman and managing director of BSNL, along with S.D. Saxena, director (finance) of BSNL, presented a cheque of Rs.3000 crore to A. Raja, minister of communications and IT, government of India, as repayment of notional government loan of Rs. 7500 crore. This notional government loan was transferred to BSNL as a part of capital structure without any additional cash inflow from the Government at the time of corporatization of erstwhile DTO and DTS. BSNL has already paid a sum of Rs. 2000 crore and Rs. 2500 crore as repayment of loan in the year 2005-06 and 2006-07 respectively. BSNL has also paid an interim dividend of Rs. 300 crore in the current financial year to the government of India.

BSNL is one of the largest contributor to government exchequer in 2006-07 by contributing more than Rs.12,800 crore in the form of dividend, license fee, corporate tax, service tax, repayment of loan, etc. In the current financial year 2007-08, BSNL is estimated to contribute more than Rs.13,000 crore to the government exchequer.

The company is proposing to make investment of more than Rs.10,000 crore for expansion of telecom network in the current financial year.

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