Lok Sabha Question No. 2275 (UNSTARRED), answered on 2020-03-04
Subject: Net Worth of BSNL
Ministry: COMMUNICATIONS
Asked by: Magunta Sreenivasulu Reddy

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK  SABHA UNSTARRED QUESTION NO. 2275 TO BE ANSWERED ON 4 TH  MARCH, 2020

## NET WORTH OF BSNL

## 2275. SHRI MAGUNTA SREENIVASULU REDDY:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether Bharat Sanchar Nigam Limited (BSNL)'s net worth has declined substantially and the current liabilities of the company exceeds its total current assets and if so, the details thereof and the reasons therefor; and
- (b) whether  the  Government  proposes  to  invest  money  to  bail  out  BSNL  and  if  so,  the  details  thereof along with the other steps taken by the Government in this regard?

## ANSWER

## MINISTER OF STATE FOR COMMUNICATIONS, HUMAN RESOURCE DEVELOPMENT AND ELECTRONICS & INFORMATION TECHNOLOGY (SHRI SANJAY DHOTRE)

- (a) Bharat Sanchar Nigam Limited (BSNL) has reported that its net worth is continuously declining for last few years. As on 31.03.2019, BSNL's current liabilities of Rs. 35,729 crore exceed the current assets of Rs. 17,924 crore. Year-wise details of the net worth, current assets and current liabilities of BSNL for the last four years are as under:

(in Rs. Crore)

| Particulars               | Figures as on   | Figures as on   | Figures as on   | Figures as on   |
|---------------------------|-----------------|-----------------|-----------------|-----------------|
|                           | 31.03.2016      | 31.03.2017      | 31.03.2018      | 31.03.2019      |
| Net worth#                | 1,02,460        | 97,674          | 89,672          | 74,734          |
| Total Current Assets      | 21,579          | 15,888          | 16,710          | 17,924          |
| Total Current Liabilities | 21,211          | 19,280          | 23,201          | 35,729          |

#based on audited financials.

The  decline  in  Networth  is  due  to  continued  losses  over  the  years.  As  regards  current  liabilities exceeding  current  assets,  BSNL  has  informed  that  it  is  facing  severe  financial  crunch  for  the  last  3  years, consequent to the decline in revenue resulting in BSNL not being able to discharge some of the liabilities.

- (b) The Cabinet in the meeting held on 23.10.2019 approved the revival plan for BSNL. The revival plan inter-alia, includes the measures to reduce the Staff cost through a Voluntary Retirement Scheme (VRS) for the employees  of  age  50  years  and  above,  administrative  allotment  of  spectrum  to  BSNL  for  providing  4G services, monetisation of assets of BSNL and debt restructuring by raising of sovereign guarantee bonds.

The Government has approved Rs.26,608 crore (Rs.13,840 crore on account of Ex-Gratia on VRS and Rs.12,768  crore  due  to  advancement  of  pensionary  benefits  spread  over  a  period  of  ten  years)  through budgetary allocation for VRS in BSNL. Full cost of spectrum (excluding GST) of Rs.14,115 crore for BSNL will be funded through equity infusion by Government and GST component of Rs. 2,541 crore will be funded through  budgetary  allocation  from  Government.  Government  has  also  approved  Sovereign  Guarantee  for bonds of Rs.15,000 crore to be raised by BSNL/MTNL for their debt restructuring.

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