BSNL's business incurs 4,963 Crore loss

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BSNL's business incurs Rs. 4,963 Crore loss
New Delhi: BSNL has incurred losses of 4,963.6 crore from its non-cellular business, which mainly constitutes its fixed line and broadband offerings, junior minister for communications and IT Gurudas Kamat informed Lok Sabha on Monday, reports Economic Times. However, despite registering massive losses from its landline business, data accessed by Economic Times shows that the company recorded a profit of 575 crore in 2008-09. For the year ended March 2009, its total revenues were at 35,811.9 crore - profits had nosedived 81 percent and revenues fell six percent when compared to last year. In 2008-09, BSNL's interest income from its cash reserves was about 3,900 crore. In the same period, its total other income from non-telecom related activities was a little over 5,000 crore. This means that the PSU's other income has covered up its losses from landline and cellular business completely. Besides, it also reveals that the telco is not making any profits whatsoever from its cellular business, the primary revenue platform for other communication firms. BSNL also gets government support of 2,000 crore annually from the Universal Obligation Fund. According to Economic Times, if not for this subsidy, BSNL's losses from its non-cellular businesses would be at 7,000 crore for last fiscal. Kamat, in his written reply also told the Lok Sabha that the telco's non-cellular business had recorded an expenditure of 21,819.9 crore in 2008-09, as against an expenditure of 26,656.7 crore - this left it with a deficit or an operating loss of 4,836.7 crore. This combined with adjustments from previous years has resulted in total losses from this segment at 4,963.6 crore, the junior minister's reply added.