Government rules out BSNL disinvestment

New Delhi, Feb 28 (UNI) The government today ruled out the disinvestment of state-owned telecom services provider, Bharat Sanchar Nigam Limited (BSNL).

In a written reply to the Rajya Sabha, Minister of State for telecom Shakeel Ahmad said in the negative when asked whether the government is considering disinvestment in BSNL for its development and expansion.

The Minister said the total paid up capital of BSNL is Rs 12,500 crores comprising equity share capital of Rs 5,000 crores and preference share capital of Rs 7,500 crores.

The total capital outlay the Minister said for 2007-08 is kept at Rs 14,065 crores and Rs 18,591 crores in 2008-09.

The Minister said there has been enormous delay in commssioing of towers due to equipment procurement efforts for BSNL's new mobile expansion project, which had received a set back with one of the bidders approaching the High Court against the decision of BSNL rejecting their bid.

None of the successful vendors of the new mobile expansion project accepted the Purchase Order for South Zone which includes Andhra Pradesh.

The towers are expected to be commissioned in 2008-09.

UNI RT SR DS1410