BSNL bets on real estate for turnaround
Sate-owned Bharat Sanchar Nigam Ltd (BSNL) has decided to utilise all resources available in a bid to come out of its financial crunch. Manoj Gairola reports.Updated: Jun 11, 2012 20:35 IST
Sate-owned Bharat Sanchar Nigam Ltd (BSNL) has decided to utilise all resources available in a bid to come out of its financial crunch. The company which has been in the red for the last three years has finalised plans to develop commercial space on its vacant plots for the purpose of leasing to companies. The company has already identified nine plots for real estate development, BSNL CMD RK Upadhyay told Hindustan Times “We will soon issue an expression of interest to appoint a consultant for the proposed project.”
The plots identified for the first phase of the project include Mumbai — Borivali (40 acres), Deonar (25 acres) and Santa Cruz (7.5 acres); , Kolkata — Maniktala (6,000 sq metres); Noida — Sector 18 (3,300 sq m) and Sector 33 (6,000 sq m); Gurgaon — Sector 18 (6,000 sq m).
The company will select developers after advice from consultants. It, however, does not plan to invest in real estate development.
“We will go for this model on a revenue-sharing basis,” said Upadhyay.
BSNL will give its office space on lease to only those companies that have potential to become its customers. “We will prefer companies in knowledge process outsourcing, business process outsourcing and call centres. We will be able to sell our bandwidth to them,” said Upadhyay. The company also plans to leave all its offices that are functioning from lease accommodation and shift to its own offices as and when they are complete. This, it hopes, will save it from operating expenses.
The company is estimated to have incurred a loss of about Rs 7,000 crore in the last fiscal year.
First Published: Jun 11, 2012 20:33 IST