BSNL, government owned telecom company has recorded a steep decline in its cash reserves to Rs 1,214.44 crores in 2011-12 from Rs 29,355.5 crore in 2009-10, down by 95.8% over the three year period, as per a written reply to the Lok Sabha by Dr Killi Kruparani Minister of state in the Ministry of Communications & Information Technology.The Economic Times quotes Telecom minister Kapil Sibal as saying that cash reserve has declined due to the loss of Rs. 6,384 crores incurred by the company in 2010-11, the payment of Rs. 18,500 crores towards 3G spectrum and Broadband Wireless Access (BWA) spectrum, payment of Rs. 5,301 crores to LIC towards group leave encashment scheme, payment of Rs.2,900 crores on implementation of revised pay scale. Financial Status of BSNL BSNL has been recording a net loss since 2009-10 posting a total loss of 1,823 crore in that year. This increased by 250% to Rs 6,384 crore, over the next year in FY-11. Further in 2011-12, the company recorded a loss of Rs.8,851 crores. Even in September 2012, Milind Deora, the Minister of State for Communications and Information Technology in a written reply to the Rajya Sabha cited high expenditure, fall in ARPU and declining revenue as the reasons for the loss incurred by the company. Kapil Sibal has called for a plan from BSNL to turn the company profitable. This plan seems to have been in progress since September 2012 for Deora had also mentioned of the steps that are being taken after Department of Telecommunication's…
