MTNL, BSNL face total debt of over Rs 21,000 cr

Market share of both the PSUs have also come down

The total debt of state-run telecom companies MTNL and BSNL has increased to Rs 21,208 crore at the end of June 2014.

It was Rs 12,983 crore as of March 31, 2012, Parliament was informed today. For BSNL, it was Rs 3,335 crore, and MTNL -- Rs 9,648 crore.

"As on March 31 (2014), the total debts on the books of BSNL and MTNL are Rs 5,948 and Rs 14,210 crores respectively," Telecom Minister Ravi Shankar Prasad said in the Rajya Sabha.

He said further that total debt on BSNL as the end of June stood at Rs 6,448 crore while it was Rs 14,760 crore for MTNL.

That apart, market share for BSNL in mobile services has come down to 12.3% at the end of May 2014 from 13.27% at the end of March 2012. The market share of BSNL in landline segment has also reduced to 82.57% at end of May 2014, from 85.61% at the end of March 2012.

MTNL, which operates in Delhi and Mumbai, market share in mobile services and landline at the end of May 2014 stood at 4.83% and 57.43% respectively.

Prasad said that inability to expand coverage due to financial and procurement problems, lack of adequate skills set due to changing nature of technology and customer centric business with focus on sales, marketing and customer services are some of main reason for decline in market share of PSUs.

He said government has taken measures to revive the two state-run telecom firms which include waiver of Rs 1,411 crore government loan to BSNL and financial support of Rs 6,724.51 crore to BSNL and Rs 4,533.97 crore to MTNL on surrender of broadband spectrum.

"Besides these measures government is engaged in formulating a coordinated plan aimed towards revival of BSNL and MTNL by addressing issues of high employee expenses and gainful utilisation of assets," Prasad said.

The minister said that BSNL and MTNL are separately preparing a revival plan for increasing revenue potential, identifying business opportunities, and organisational restructuring to enable them to grow into customer-centric companies with expertise in marketing and customer services delivery.