Lok Sabha Question No. 593 (UNSTARRED), answered on 2017-07-19
Subject: Losses Incurred by BSNL And MTNL
Ministry: COMMUNICATIONS
Asked by: KRUPAL BALAJI TUMANE

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO.593 TO BE ANSWERED ON 19 th  JULY, 2017

## LOSSES INCURRED BY BSNL AND MTNL

- †593. SHRI KRUPAL BALAJI TUMANE

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether the losses of the BSNL and the MTNL is on the rise and they have to recover huge amounts from subscribers;
- (b) if  so,  the  details  thereof  and  the  amount  recovered  during  the  last  three  years and the current year in connection with landline and mobile services and the details of the amount recovered;
- (c) the  amount  of  MTNL  bills  pending  with  the  Government  offices  and  public representatives in Delhi and Mumbai;
- (d) whether notices have been issued to the defaulters for non-payment of pending amount;
- (e) if so, the details thereof and if not, the reasons therefor; and
- (f) the steps taken by the Government to recover pending amount from subscribers and the PMU?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

(a) & (b)

BSNL: As  compared  to  2013-14,  the  losses  increased  in  2014-15  and decreased in 2015-16. Details of the same are placed at Annexure 'A' .  Details of the outstanding  of  Landline  Telephone  connections  and  Post-paid  mobile  connections  of BSNL for last three years and current year are as per Annexure'B' and 'C' respectively.

MTNL: As  compared  to  2014-15,  the  losses  decreased  in  2015-16  and increased in  2016-17.  Details  of  Outstanding  dues  and  amount  recovered  during  last three years and current year of MTNL are as per Annexure-I and Annexure-II.

- (c)    Details  of  outstanding  amount  of  MTNL  against  Government  offices  and  public representatives in Delhi and Mumbai as on 31.05.2017 are as under:

(Amount in Rs. crores)

| DELHI   | DELHI    | MUMBAI   | MUMBAI   | TOTAL   |
|---------|----------|----------|----------|---------|
| Basic   | Wireless | Basic    | Wireless |         |
| 13.83   | 6.45     | 5.47     | 12.41    | 38.16   |

- (d) & (e) Yes, Madam. Defaulters notices, registered notices and legal notices have been issued to the defaulters for non-payment of pending amount.
- (f) The steps taken by BSNL and MTNL are given in Annexure 'D' &  Annexure IV respectively:

Contd…3/-

## Annexure - A

## PROFIT AND LOSS ACCOUNT (BSNL)

| Sl.No.   | Particular                                   | 2013-14   | 2014-15   | 2015-16   |
|----------|----------------------------------------------|-----------|-----------|-----------|
|          | Audited                                      | Audited   | Audited   | Audited   |
| 1        | Revenue from operation                       | 26,153    | 27,242    | 28449     |
| 2        | Other Income                                 | 1,843     | 1,403     | 4469      |
| 3        | Total Income                                 | 27,996    | 28,645    | 32918     |
| 4        | Employees Remuneration and Benefits          | 15,436    | 14,962    | 15387     |
| 5        | License Fee and spectrum charges             | 2,243     | 2,170     | 2285      |
| 6        | Depreciation                                 | 6,023     | 8,817     | 7135      |
| 7        | Administrative, operating and Other Expenses | 11,008    | 10,840    | 11392     |
| 8        | Financial Expenses                           | 219       | 502       | 543       |
| 9        | Total Expenditure                            | 34,929    | 37,291    | 36742     |
| 10       | EBITDA                                       | (691)     | 673       | 3,854     |
| 11       | Profit Before Prior Period Item              | (6,933)   | (8,646)   | (3,824)   |
| 12       | Prior period Adjustments                     | (190)     | (197)     | (345)     |
| 13       | Profit Before Tax (PBT)                      | (7,123)   | (8,843)   | (4,169)   |
| 14       | Extra ordinary items                         |           |           |           |
| 15       | Provision for Tax (including Deferred Tax)   | (104)     | (609)     | (289)     |
| 16       | Net Profit                                   | (7,019)   | (8,234)   | (3,880)   |

## (BSNL)

## Annexure-B

| Details of Landline outstanding as on 30.04.2017   | Details of Landline outstanding as on 30.04.2017   | Details of Landline outstanding as on 30.04.2017   | Details of Landline outstanding as on 30.04.2017   | Details of Landline outstanding as on 30.04.2017   | Details of Landline outstanding as on 30.04.2017   |
|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|
| Year                                               | Opening Balance of Outstanding                     | Amount Billed For(ABF) during the year             | Gross Outstanding                                  | Amount Recovered                                   | Closing balance of Outstanding                     |
| 2014-15                                            | 2003.77                                            | 4796.55                                            | 6800.32                                            | 4939.13                                            | 1861.19                                            |
| 2015-16                                            | 1861.17                                            | 4566.37                                            | 6427.54                                            | 5035.73                                            | 1391.81                                            |
| 2016-17                                            | 1391.83                                            | 4010.72                                            | 5402.55                                            | 4229.59                                            | 1172.96                                            |
| 2017-18 (Up to April 2017)                         | 1172.96                                            | 299.89                                             | 1472.85                                            | 295.71                                             | 1177.14                                            |

## Annexure-C

| Details of outstanding and recovery for the last three years and the current year (01-04-2017 to 31-05-20017) against postpaid mobile subscribers   | Details of outstanding and recovery for the last three years and the current year (01-04-2017 to 31-05-20017) against postpaid mobile subscribers   | Details of outstanding and recovery for the last three years and the current year (01-04-2017 to 31-05-20017) against postpaid mobile subscribers   | Details of outstanding and recovery for the last three years and the current year (01-04-2017 to 31-05-20017) against postpaid mobile subscribers   | Details of outstanding and recovery for the last three years and the current year (01-04-2017 to 31-05-20017) against postpaid mobile subscribers   | Details of outstanding and recovery for the last three years and the current year (01-04-2017 to 31-05-20017) against postpaid mobile subscribers   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                     |                                                                                                                                                     |                                                                                                                                                     | Amount in Crores of Rs.                                                                                                                             | Amount in Crores of Rs.                                                                                                                             | Amount in Crores of Rs.                                                                                                                             |
| Year.                                                                                                                                               | Opening Balance of Outstanding                                                                                                                      | Amount Billed for (ABF) During the year                                                                                                             | Gross Outstanding                                                                                                                                   | Amount Recovered                                                                                                                                    | Closing Balance of Outstanding                                                                                                                      |
| A                                                                                                                                                   | B                                                                                                                                                   | C                                                                                                                                                   | D=B+C                                                                                                                                               | E                                                                                                                                                   | F=D-E                                                                                                                                               |
| 2014-15                                                                                                                                             | 566.66                                                                                                                                              | 1517.22                                                                                                                                             | 2083.88                                                                                                                                             | 1540.53                                                                                                                                             | 543.35                                                                                                                                              |
| 2015-16                                                                                                                                             | 543.35                                                                                                                                              | 1534.48                                                                                                                                             | 2077.83                                                                                                                                             | 1647.95                                                                                                                                             | 429.88                                                                                                                                              |
| 2016-17                                                                                                                                             | 429.88                                                                                                                                              | 1529.54                                                                                                                                             | 1959.42                                                                                                                                             | 1586.68                                                                                                                                             | 372.74                                                                                                                                              |
| 2017-18 (Upto- May-17)                                                                                                                              | 372.74                                                                                                                                              | 224.26                                                                                                                                              | 597                                                                                                                                                 | 223.05                                                                                                                                              | 373.95                                                                                                                                              |

Contd…5/-

## BSNL

BSNL has taken number of steps to recover the outstanding dues. The details of steps taken for recovery as well as action taken against defaulters by BSNL are detailed below:

- 1) Instructions  have been issued to ensure timely issue of telephone bills and to effect disconnection of telephones for non-payment promptly.
- 2) Payment  reminders  through  Interactive  Voice  Response  System(IVRS)  and SMS are being issued to persuade the customers to make payment before pay by date and before disconnections of their telephone/mobile connections.
- 3) Phones are disconnected as per the schedule in case of non-payment of dues by customers.
- 4) Connections remaining disconnected for non-payment are permanently closed as per instructions issued on the subject and their account finalized by adjusting available security deposit.
- 5) Schemes like Samadhan Scheme, graded discount scheme etc. to incentivize defaulting customers, for clearance of old outstanding dues was introduced.
- 6) Legal  proceedings  wherever  required  are  initiated  against  the  defaulters  for recovery of dues.
- 7) The State Governments have been requested to amend their respective Land Revenue Acts so that the defaulted Telephone dues of BSNL can be recovered as land revenue arrears.
- 8) Circle-wise and Year-wise target for liquidation of outstanding dues are fixed to get the maximum realization.
- 9) Pursuit cell teams visits defaulter premises for realization of dues. If outstanding amount is still remains un-recovered, the cases are filed in LokAdalat.
- 10)  Help of Police Authority as well as Revenue Authority is also taken in realization of old outstanding.
- 11)  The progress in regard to liquidation of outstanding dues is closely monitored and units are addressed periodically.
- 12)  If no payment is received despite disconnection, registered notices followed by a legal notice if necessary, are sent.
- 13)  Circles  have  also  been  asked  to  utilize  the  services  of  State  Government Departments in recovery of outstanding dues.
- 14)  Procedure  for  settlement  of  defaulter  cases  through  LokAdalats  has  been introduced for recovery of outstanding telephone dues in respect of permanently closed connections.
- 15)  In  case  any  official/agency  found  responsible,  action  as  per  departmental guidelines are being taken which is a continuous process.

Contd….6/-

## Details of Profit/Losses of MTNL for last Three years

| FINANCIAL YEAR   | PROFIT / (LOSS) (Rs. in Crs)   |
|------------------|--------------------------------|
| 2014-15          | (2893.41)                      |
| 2015-16          | (2005.74)                      |
| 2016-17          | (2941.08)                      |

## ANNEXURE-II

(Amount in Crores of Rs)

| Years                   | Opening Balance of Outstanding   | Amount Billed for (ABF) during the year   | Gross Outstanding   | Amount Recovered   | Closing Balance of outstanding   |
|-------------------------|----------------------------------|-------------------------------------------|---------------------|--------------------|----------------------------------|
| A                       | B                                | C                                         | D=B+C               | E                  | F=D-E                            |
| 2014-15                 | 711.16                           | 2044.19                                   | 2755.35             | 2042.05            | 713.30                           |
| 2015-16                 | 713.30                           | 1997.60                                   | 2710.90             | 2032.87            | 678.03                           |
| 2016-17                 | 678.03                           | 1823.91                                   | 2501.94             | 1817.27            | 684.67                           |
| 2017-18 (Upto Apr-2017) | 684.67                           | 188.06                                    | 872.73              | 179.55             | 693.18                           |

Contd….7/-

Details of Landline Outstanding as on 30-04-2017

## Annexure-I

ANNEXURE-III

Details of Outstanding and recovery for the last three years and the current year (01-042017 to 31-05-2017) against post-paid mobile subscribers

(Amount in Crores of Rs)

| Years                   | Opening Balance of Outstanding   | Amount Billed for (ABF) during the year   | Gross Outstanding   | Amount Recovered   | Closing Balance of outstanding   |
|-------------------------|----------------------------------|-------------------------------------------|---------------------|--------------------|----------------------------------|
| A                       | B                                | C                                         | D=B+C               | E                  | F=D-E                            |
| 2014-15                 | 189.61                           | 95.04                                     | 284.65              | 95.58              | 189.07                           |
| 2015-16                 | 189.07                           | 92.82                                     | 281.89              | 114.16             | 167.73                           |
| 2016-17                 | 167.73                           | 80.67                                     | 248.40              | 101.46             | 146.94                           |
| 2017-18 (Upto Apr-2017) | 146.94                           | 11.22                                     | 158.16              | 9.85               | 148.31                           |

## MTNL

The following steps are taken to recover the Outstanding dues:

- 1) Automated IVRS reminders and manual reminders are being given regularly,
- 2) Intimation through SMS to subscribers.
- 3) The  disconnection  of  the  Telephone  is  resorted  as  per  the  Standard  Operating Procedures.
- 4) Visits are being made to the subscriber premises wherever necessary.
- 5) Recovery through LOK NYALAYA.
- 6) Recovery through Amnesty Scheme.
- 7) Wide publicity is given to encourage the customer to settle their old dues.

Recovery suits are filed in the court of law as per the procedures.

************

## Annexure-IV