BSNL may suffer loss due

Last year, the tariff rebalancing affected the revenues of DTS by upto Rs 2,000 crore, sources said adding that this year with opening up of national long distance communication (STD), corporation’s revenue would be under pressure. The subscribers would get multiple options to make STD calls. In such a scenario, BSNL would find it difficult to discharge its social obligations like providing telephone facilities in the rural areas.

Asked whether Finance Minister gave any assurance, sources said it would be premature to comment but added that "we will put up the case before the finance ministry before it starts budget exercise for the year 2001-02."

BSNL is, meanwhile, weighing the option of decentralisings operations into regional entities on the lines of Coal India Ltd (CIL) or formation of "virtual corporation," as part of efforts to streamline the operations of the state-owned company.

"One of the option that BSNL currently has is to structure the corporation similar to CIL, with various regional entities operating under a holding company, and the corporation is actively looking at the option," sources said. Streamlining of functions was necessary to prepare annual financial accounts which was extremely time consuming and the structure like CIL could provide a practical solution to this problem.

The government has fixed itself a deadline of April 1,2001 for making the newly formed BSNL a proper commercial entity, following the completion of restructuring process. Global consultants A F Furgueson, who co-ordinated the corporatisation of the erstwhile Department of Telecom Services (DTS), has been directed to be with the BSNL for another six months to accomplish the task of financial as well as functional restructuring.