Govt considering partial stake sale in BSNL

The government today said it is considering part sale of its shareholding in the telecom PSU BSNL, a move that would help the company in getting Navratna status besides access to capital market for raising fresh funds.

To a written query in the Lok Sabha seeking details of the proposal for divesting stake in BSNL, Telecom Minister A Raja said that the government is considering disinvestment in BSNL and listing it on the bourses.

The minister further informed that BSNL board on its meeting held on July 25, after considering all the pros and cons of listing and to strengthen the company's claim for Navratna status, decided that it should get listed.

The status of Navratna is conferred by the Department of Public Enterprises. The status will further give BSNL more autonomy.

Divulging the cash position of BSNL, he said at present, BSNL is able to meet all its fund requirements from internal resources. The telecom PSU had Rs 35,337 crore as on March 31,2009. The amount required for development and expansion plan for 2009-10 is Rs 14,015 crore.