Lok Sabha Question No. 104 (STARRED), answered on 2022-12-14
Subject: Profit or Loss Incurred by BSNL
Ministry: COMMUNICATIONS
Asked by: Gowdar Mallikarjunappa Siddeshwara

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA STARRED QUESTION No. 104 FOR ANSWER ON 14 TH  DECEMBER, 2022

## PROFIT OR LOSS INCURRED BY BSNL

## *104.   SHRI G.M. SIDDESHWAR:

| Will the Minister of                                                                | COMMUNICATIONS be pleased to state:                                                                                    |
|-------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|
| (a) the                                                                             | the details of revenue generated along with the profit or loss incurred by the BSNL during last five years, year-wise; |
| (b)                                                                                 | the reasons for incurring regular losses by BSNL, if any;                                                              |
| (c) of the                                                                          | the steps taken by the Government to save the jobs of permanent and temporary employees BSNL;                          |
| (d) thereof;                                                                        | whether the income of BSNL has declined during the said period and if so, the details and                              |
| (e)                                                                                 | the steps taken/proposed to be taken to increase the income of BSNL?                                                   |
| ANSWER MINISTER OF RAILWAYS, COMMUNICATIONS& ELECTRONICS AND INFORMATION TECHNOLOGY | ANSWER MINISTER OF RAILWAYS, COMMUNICATIONS& ELECTRONICS AND INFORMATION TECHNOLOGY                                    |
| (a) to (e)                                                                          | A statement is laid on the Table of the House.                                                                         |

## STATEMENT TO BE LAID ON THE TABLE OF LOK SABHA IN RESPECT OF PARTS (a) to (e) OF LOK SABHA STARRED QUESTION NO. 104 FOR 14 th  DECEMBER, 2022 REGARDING 'PROFIT OR LOSS INCURRED BY BSNL'

(a) to (e) The details of revenue generated along with the profit or loss of BSNL for the last five years and current year are as given below:

| Particulars                | Total Revenue (in Rs. Crores)   | Net profit/(loss) (in Rs Crore)   |
|----------------------------|---------------------------------|-----------------------------------|
| Half Year ended 30.09.2022 | 9,366                           | (3,589)                           |
| 2021-22                    | 19,052                          | (6,982)                           |
| 2020-21                    | 18,595                          | (7,441)                           |
| 2019-20                    | 18,907                          | (15,500)                          |
| 2018-19                    | 19,321                          | (14,904)                          |
| 2017-18                    | 25,071                          | (7,993)                           |

The reasons for losses of BSNL are high employee cost over the years, debt burden, stiff competition in the market and lack of 4G services (except on a limited basis in certain areas).

On 23.10.2019, Government of India approved the revival plan for BSNL and MTNL. It inter-alia approved the reduction in employee costs through Voluntary Retirement Scheme (VRS), debt restructuring by raising of sovereign guarantee bonds, administrative allotment of spectrum for 4G services through capital infusion, monetization of core and non-core assets and in-principle approval  of  merger  of  BSNL  and  MTNL.    As  a  result  of  these,  BSNL  has  become  EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) positive since the financial year 2020-21.

Further, to transform BSNL into a viable Public Sector Undertaking, the Government on 27.07.2022 approved a revival package for BSNL amounting to Rs 1.64 lakhs crores. The revival measures focus on infusing fresh capital for upgrading BSNL services, allocating spectrum, destressing its balance sheet and augmenting its fibre network by merging Bharat Broadband Nigam Limited (BBNL) with BSNL.

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