Submit plans to become profitable, Sibal asks BSNL

BSNL's losses have more than tripled to Rs 5,997 crore during FY11

Telecom Minister Kapil Sibal today asked loss-making BSNL to submit plans for five projects that will help the company turn profitable.

"I have asked BSNL to submit plans for five projects in the next four to six weeks which will help the company to move towards profitability," Sibal told reporters in Faridabad.

BSNL's losses have more than tripled to Rs 5,997 crore during 2010-11. The company had registered a net loss of Rs 1,823 crore during 2009-10.

BSNL had reported the highest net profit of over Rs 10,000 crore in 2005-06 but since then its profits have been falling and reported first net loss in 2009-10.

"Though BSNL has a net worth of Rs 86,000 crore, but it incurred a loss of 6,000 crore, that is something thats needs to be changed," Sibal said.

In order to turn profitable, BSNL has prepared several plans which also include a voluntary retirement plan to employees.

BSNL has been asked to submit plans relating to tower sharing, usage of land and infrastructure which are not is use among others.

The state-run service provider has over 50,000 towers across India. BSNL has tower sharing pacts with many private telecom operators.

BSNL also has huge land and network assets, which is one of the largest in the country.

"In my terms, I want to see BSNL becoming a Navratna," Sibal said.