MTNL hands over dividend of over Rs. 35 crores to Communications Ministry

New Delhi, Oct 22 (ANI): Union Minister of Communications and Information Technology A Raja has asked the MTNL to stand before other operators in spite of competitive atmosphere.

He assured all support to the MTNL in discharging its special responsibility of social obligations.

The Minister was speaking on the occasion of presentation of dividend cheque for Rs. 35 crores by MTNL here today.

In its 23rd AGM held on September 25, the MTNL approved payment of dividend @ 10 per cent, amounting to Rs. 63 crores on the paid up equity capital of Rs. 630 crores, for the financial year 2008-09.

Out of Rs. 63 crores, Rs. 35.43 crores were paid to the Government and Rs. 27.57 crores to others.

Handing over the cheque the MTNL CMD R.S.P. Sinha said that the MTNL has paid dividend @ 40 per cent during last year. But dividend had to be reduced this time due to rise in expenditure, on account of salary hike and investment in rolling out of 3G services.

The MTNL was set up on April 1, 1986 by the Government to update the quality of telecom services, telecom network, introduce new services and to raise revenue for telecom development needs of India's key metros- Delhi and Mumbai.

In the past 21 years, the company has emerged as India's leading and one of Asia's largest telecom operating companies.

Besides having a strong financial base, the MTNL has achieved a customer base of 81,82, 133 as on August 31.

The company has also been in the forefront of technology induction by converting 100 per cent of its telephone exchange network into the state-of-the-art digital mode.

The Government currently holds 56.25 per cent stake in the company.

In the year 2008-09, the company is focussing on 3G service, broadband, IPTV and VOIP customer base, achieving at least 7, 50, 000 broadband customers, and further expanding its operations through acquisitions and Greenfield licenses in overseas market. (ANI)