BSNL net profit zooms 70%

Bharat Sanchar Nigam Ltd (BSNL), India's largest telecom service provider, today reported 70.4 per cent growth in net profit to Rs 10,183 crore during 2004-05, as against Rs 5,976 crore during 2003-04.

The company gained around Rs 2,100 crore on account of tax refunds and write-back of tax provisions in the previous year. It received another Rs 1,200 crore from the government from the Universal Service Obligation Fund, a company executive said.

The company's turnover rose 6 per cent to Rs 36,000 crore during 2004-05, compared with around Rs 34,000 crore in the previous financial year.

BSNL Chairman and Managing Director A K Sinha handed over a cheque of Rs 975 crore to Communications and Information Technology Minister Dayanidhi Maran today. BSNL paid a dividend of Rs 1,175 crore.

The company also said that public sector telecom equipment manufacturers will be given 25-30 per cent of its upcoming tender for 60 million GSM lines.

Sinha said the tender for 60 million GSM lines will be issued next month and added that the PSU was in the process of working out the terms and conditions.

"Telecom equipment PSUs will be given between 25 - 30 per cent of the tender. There will also be a clause for local manufacturing. The tender will also include 3G mobile services," he said.

This implies that ITI, which is the only Indian PSU in the business of manufacturing GSM equipment is assured of a contract of a minimum of 15 million GSM lines.

ITI has a tie-up with French telecom major Alcatel at its Mankapur and Rae Bareli facilities in Uttar Pradesh to manufacture GSM equipment.