BSNL operating profit to be over Rs 2,000 cr this year: Ravi Shankar Prasad

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July 05, 2016 8:46 PM

State-run BSNL will post over three-fold jump in its operating profit at Rs 2,000 crore for financial year 2015-16, Telecom Minister Ravi Shankar Prasad said today.

BSNLBSNL is in process of preparing its financial result for 2015-16. Before this, the state-run firm had posted operating profit of Rs 916 crore in 2012-13. (PTI)

State-run BSNL will post over three-fold jump in its operating profit at Rs 2,000 crore for financial year 2015-16, Telecom Minister Ravi Shankar Prasad said today.

“BSNL was in heavy loss. We brought it in operating profit of Rs 672 crore in first year (of coming to power). Audit is on. By end of August when final audited result will be declared then BSNL will strike an operating profit of over Rs 2000 plus this year,” Prasad told reporters after the Cabinet meeting

BSNL is in process of preparing its financial result for 2015-16. Before this, the state-run firm had posted operating profit of Rs 916 crore in 2012-13. The company registered total income of Rs 28,645 crore and net loss stood at Rs 8,234 crore in 2014-15.

Prasad said that Cabinet has approved the revision of pension of BSNL pensioners retired prior to June 10, 2013 resulting in about 9 per cent increase in pay-out for 1,88,500 employees.

The revision of pension allows BSNL pensioners and family pensioners, who retired prior to June 10, 2013 “benefit of merger of 50 per cent DA/DR with Basic Pay/ Pension, effectively amounting to 78.2 per cent DA/DR for the purpose of fitment”.

BSNL employees were earlier given salary and 68.8 per cent dearneess allowance. Later the government decided to merge 50 per cent of DA in their salary and 18.8 per cent was calculated on resultant salary.

This leads to 9.4 per cent higher pay-out for employees but pensioners who retired between 2007-2013 were left out.

This revision will fulfil the long pending demand of revision of pension of BSNL absorbed employees who retired prior to June 10, 2013 and will bring the pensioners at par with the serving employees of BSNL by removing the anomalies.

“The pension of BSNL pensioners/family pensioners, who retired prior to June 10, 2013 has been revised with effect from January 1, 2007 notionally with actual benefit with effect from June 10, 2013,” an official statement said.

The revision entails an estimated recurring annual expenditure of approximately Rs 129.63 crore for pensioners and Rs 24.93 crore for family pensioners and arrears from 2013-14 would be Rs 239.92 crore approximately for pensioners and Rs 44.62 crore approximately for family pensioners, the statement said.

However, increase in the amount of DCRG (death cum retirement gratuity), leave encashment and commutation of pension in respect of these pensioners shall not be increased on this account, it added.

Government has also taken responsibility of pensionary benefits of employees from Department of Telecom, Department of Telecom Services and Department of Telecom Operations who are absorbed in BSNL.

The state-run firm will have to continue discharging pension liability by way of pension contribution for the period they are working or have worked.

The revision will “help in reducing the financial burden of BSNL and removing prospects of industrial unrest in BSNL while fulfilling the commitment of Government”.

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