Business Standard
Saturday, Jul 16, 2011
drived banner
drived banner
  Advanced Search
Content Guide
Follow us on  
| | Companies & Industry | | | | | | |  
 Section Home | News Now | Today's Paper | Q&A | People in the News | Industry News | Features | The Compass | Research & Analysis | Opinion | Corporate Results
Home > Companies & Industry Live Markets | Commodities

Sibal effect: Select BSNL circles post revenue growth
Press Trust of India / New Delhi July 10, 2011, 12:36 IST

Within a month of Telecom Ministry reviewing performance of loss-making PSU BSNL, some circles, including Maharashtra and West Bengal, have started showing improvement.

"Out of the 24 circles a few of the circles have already started showing good performance on gross revenue basis between the range of 14% to 18%. West Bengal is showing a growth of 18%, Maharashtra is giving returns of 15.5%, and Orissa and UP areshowing growth of 14%," a senior DoT official said.

Earlier Telecom Minister Kapil Sibal had said that the organisation must have targets for circles according to which if the officials don't perform, they will be transferred out while those who meet the targets will be rewarded, like given a posting of their choice.

Department of Telecom (DoT) started reviewing performance of all 24 circle heads of the service provider on monthly basis, after a decision to adopt revenue monitoring criteria for reviewing a commercial organisation like BSNL.

BSNL provides telecommunications and related services in 20 of the country's 22 telecom service areas. The PSU, once the country's flagship telecom company and which posted a net profit of over Rs 10,000 crore in 2005-06, reported a net loss of Rs 1,823 crore on revenue of Rs 32,046 crore in 2009-2010.  It is also likely to report losses for the financial year ended March 2011.
"Still there are circles, including Uttaranchal, North East, Punjab and Haryana, which are still not performing well and they have to tighten up their belts or else be ready to face the music," the official added.
In terms of mobile subscribers, BSNL has been relegated to the fifth position from the second rank it held just a few years ago since the company has failed to match the competition from private players like Bharti, Vodafone, Idea and Tatas.
Earlier, DoT had instructed BSNL directors in all the 22 territorial circles to mop up monthly revenues by 25%, failing which strict action will be taken against them.
Under the revenue maximisation strategy, BSNL's circles have been divided into three-revenue wise categories, including those with less than Rs 1,000 crore revenue, those with Rs 1,000-2,000 crore revenue and circles with revenues in excess of Rs 2,000 crore.
The company in its projection to Board for Reconstruction of Public Sector Enterprises (BRPSE) had informed that it expects to turn profitable in the fiscal ending March 2013, but projects a net loss for 2010-11 and the ongoing year that began on April 1.
It expects a net loss of Rs 2,725 crore on revenue of Rs 31,738 crore in the fiscal year ended March 31, 2011. In 2011-12, the loss is expected to narrow down to Rs 623 crore on revenue target of Rs 36,569 crore.

Arrow Other Stories     
- Sensex ends down 68 pts
- RIL plans to shut 110,000 bpd VGO unit in Sept
- Govt plans to modernise I-T: Pranab
- I won't defend myself until probe ends, Raja tells court
- RBI asks foreign firms to regularise branch offices
  Read Business news in 
Do you think the Sensex could dip to 15,000 levels in the near term?    
   An accelerated entry into CIMA for CAs. Know more.
   Enjoy a family vacation in Goa like never before...
   Now MBAs can fast-track into CIMA. Find out how.
   Shortcut to CIMA for ICWAI members/finalists.
   Discover More With Cloud Power Click here to know more
   Win a Business Class ticket to the US on the A380...
   Experience the joy of rains on the mountains...
   Cheapest big car with 3 years warranty!
   Be the first to get great deals on hotel offers... Know More..
   Health is Wealth..... Insurance + Savings... Know More...
   Business-grade NAS Solutions for SMBs. Click here to know more.
   Are you ready for the trip of your life ?
   Steel lending Strength to the nations's defence. Click here
   We integrate Security with your business. Click here
   Enhance business productivity with cutting-edge technologies....
   Choose your markets: Commodities,equities & Currencies...
   CFA Institute, Enroll Before 24th August.
   To us your health comes first. Know More. Anniversary/ B'day/ Midnight Flowers & cakes delivery in India
Share this Story  
Markets Update Powered by   
   Smart Moves More 
 Company Last (Rs)    Remarks
 ECE Industries Ltd 123.40     Gains on announcement of buyback schedule
 Tata Consultancy Services Ltd 1,148.05     June quarter net up 27% at Rs 2,415 cr
 VST Industries Ltd 1,188.15     Hits lifetime high on healthy Q1 nos
 Tata Motors Ltd 1,036.15     Global sales drop 1% in June
   Top Gainers
Company Last (Rs) Gain (%)
TCS 1,148.05 2.03 
M & M 718.85 0.83 
Wipro 414.60 0.74 
   Top Losers
Company Last (Rs) Gain (%)
Tata Motors 1,036.15 -2.61 
Sterlite Inds. 163.05 -2.01 
O N G C 278.15 -1.94 
   Expert Speaks
‘There are headwinds in the near-term'
Jignesh Shah, Executive Director, Sarasin-Alpen (India) Private Limited
   Live Commentary
- The Sensex finally ended at 18,562, lower by 56 points and the Nifty ended at 5,581, down 19 points
- Sensex losers: Tata Motors, Sterlite Industries, ONGC, Cipla, Tata Power, HDFC and RCom
   Discussion Board / User Comments    
Display Name   Email-Id  
Post your comment
Latest Messages
Most Popular
-   Potter scripts lead over Zindagi Na Milegi Dobara
-   Trai speeds up 4G auction process
-   Gold sprints to a new high
-   Mobile apps to drive IT growth in state
-   Ford bumping into capacity constraints
Follow Business Standard on Twitter
  Hot Searches  
GTL |  Kanimozhi |  PlayBook |  Lanco |  Greece |  Speak Asia |  Cairn India |  iCloud |  Dainik Jagran |  Silver |  iPad 2 |  Vedanta |  Provident Fund |  income tax refund |  Anna Hazare |  Libya |  iPhone |  Air India |  Reliance Industries |  3G  |  SEBI |  BSNL |  Copper |  BSE |  NSE |  Amitabh Bachchan |  Mukesh Ambani |  Anil Ambani |  Bollywood |  TCS |  Infosys |  Pranab Mukherjee |  Sonia Gandhi |  Rahul Gandhi |  New Pension Scheme |  Service tax |  Reliance |  RBI |  GDP |  Gold |  Ratan Tata |  ICICI |  B-School |  Sensex |  Tax calculator |  Home Loan |  Personal Finance |  inflation |  oil prices |  Barack Obama |   
  Member Area Write to the Editor RSS Archives Advanced Search
  Subscribe to BS print product BS e-paper Newsletter Portfolio Tracker
  BS Products BS Hindi BS Motoring BS Books
Home | Markets & Investing | Companies & Industry | Banking & Finance | Economy & Policy | Opinion
Life & Leisure | Management & Marketing | Tech World
About Us | Partner With Us | Code of Conduct | Careers | Advertise with us| Terms & Conditions | Disclaimer | Contact Us