BSNL mulls shares for staff, moans about delays | business | Hindustan Times
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BSNL mulls shares for staff, moans about delays

The government-owned Bharat Sanchar Nigam Ltd (BSNL) may offer preferential shares to its about three lakh employees when the company disinvests its 10 per cent equity.

business Updated: Jan 07, 2010 21:11 IST
Manoj Gairola

The government-owned Bharat Sanchar Nigam Ltd (BSNL) may offer preferential shares to its about three lakh employees when the company disinvests its 10 per cent equity.

The proposal was discussed on Wednesday when the Prime Minister reviewed the performance of the state telecom behemoth.

“We informed the prime minister about the problems faced by the company including the procurement of equipment,” A. Raja, communications and IT minister told Hindustan Times.

“We highly appreciate that the PM has taken personal interest in BSNL and welcome any step taken by the government, including disinvestment of its equity, to improve the company’s performance,” said S. S. Sirohi, president of Indian Telecom Service Association (ITSA).

Though no formal valuation of the company has taken place, some experts value it at about $50 billion. It had revenues of about Rs 35,812 crore for the year ending March, 2009.

The meeting discussed ways to streamline equipment purchase and the burden the company faced in expanding telephony in rural areas.

Raja informed the prime minister that the company had suffered a lot on account of delays in procurement of GSM equipment.