BSNL and MTNL declares dividend

New Delhi, Oct 26 (UNI) State-owned telecom operators, Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) have declared a dividend of Rs 1175 crore and Rs 189 crore respectively for FY 2005-06.

The cheques for the final dividend amount of Rs 800 crore and Rs 35.43 crore, after adjusting the interim dividend already paid by the two PSUs, were respectively handed over by CMD, BSNL Anil Kumar Sinha and CMD, MTNL R S P Sinha to Communications and IT Minister Dayanidhi Maran and his deputy Dr Shakeel Ahmad.

BSNL has already paid Rs 375 crore as interim dividend while MTNL paid Rs 106.31 crore earlier to the Government.

Speaking on the occasion Mr Maran said both the PSUs, BSNL and MTNL were playing a provocating role while their target is proactive. He hoped that the coming years will be more aggressive for the competitors in market.

MTNL has approved payment of final dividend at 40 per cent (Rs 4 per share) including 30 per cent interim dividend already paid, on the paid up equity capital of Rs 630 crore for the financial year 2005-06.

MTNL has been paying dividend at the rate of 45 per cent on its equity capital of Rs 630 crore. However, the decline of five per cent is mainly attributed to the factor that it has to face stiff competition and reduction in tariff.

In the last five years an aggregate amount of Rs 1669.50 crore has been paid as dividend to shareholders including Rs 939.04 crore to the Government towards their shareholding in the company.

However, BSNL has been investing for expansion of telecom infrastructure in the country and an amount of Rs 8,892 crores was invested last year for providing cellular services, broadband services, corporate network and other services.

The company is trying to expand its telephone services to rural, tribal and remotely located areas of the country.

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