Cash-strapped Bharat Sanchar Nigam Ltd is looking to raise up to Rs 15,000 crore through long-term loans from banks. The telecom PSU has appointed SBI Capital Markets to arrange the loans.
According to sources, BSNL's cash position is so weak that it is finding it difficult even to pay salaries to its 3 lakh employees. In addition, the state-run company has to buy GSM equipment for which it has floated a tender. The tender is for buying equipment to support 14 million subscribers, which could cost about Rs 5,000 crore. BSNL had earlier asked equipment suppliers to arrange for funding but later dropped this after the vendors did not show any interest.
Separately, BSNL has also asked the Department of Telecommunications for a one-time grant of Rs 5,000 crore as an immediate relief. The PSU had sought Rs 1,500 crore from the USO fund to support rural phones but DoT had rejected this request.
The company has suggested other means to raise funds including leasing out its tower and network infrastructure to private players. In addition, it has proposed to surrender its broadband spectrum in a few circles and receive a refund of a part of the Rs 8,500 crore it had paid for acquiring the airwaves in 2010.
BSNL's financial woes started a few years back for which the employees union has blamed the management and political interference. The PSU had registered a loss of over Rs 6,000 crore for 2010-11, mainly due to high staff cost and payments made for acquiring 3G and BWA spectrum. In comparison, the company had made a profit of Rs 4,230 crore in 2005 which slumped to a profit of Rs 574 crore in 2009.
In a bid to get the company back on track, the management has proposed to give VRS to nearly one lakh employees, a move objected to by the workers' union.