DoT panel says BSNL IPO should wait at least two more years

3 Nov 2010

The divestment of a stake in state-owned Indian telco Bharat Sanchar Nigam Ltd (BSNL) should be pushed back by at least two years, a high-level committee in the Department of Telecommunications (DoT) has claimed. Local news source DNA India is reporting that the committee, which had been tasked with considering recommendations for revamping the operator put forward by Sam Pitroda, advisor to the prime minster on public infrastructure and innovation. It is understood that the DoT’s panel believes that the initial focus should be on improving the performance of the ailing telco, which in August 2010 reported its first ever yearly net loss in the ten years since its creation, posting a net loss of INR18.23 billion (USD390 million) for the twelve months ended 31 March 2010. ‘After improving the performance, disinvestment can be done in stages to get the right valuation,’ the committee noted.

India, Bharat Sanchar Nigam Limited (BSNL)