BSNL likely to get Rs 3000 cr as loan
Thrissur: The banks which never considered Bharat Sanchar Nigam Limited (BSNL), the Indian state-owned telecommunications company, for granting loans have now taken a favourable stand. BSNL is likely to get a loan of Rs 3000 crore this month itself. This amount will be used to clear the outstanding payment of those who applied for Voluntary Retirement Scheme (VRS).
The banks decided to take a favourable stand towards BSNL as it implemented the largest VRS scheme the country ever witnessed and in view of the possible increase of income in the future. The bank loan is essential for completing the procedures of VRS.
Provident Fund (PF), LIC premium and loan repayment of the staff are not paid for months. VRS cannot be implemented without clearing these outstanding amounts. The company approached the banks in order to raise the fund for these purposes. Also the Telecom Department has supported the company to get bank loan.
BSNL has been struggling for many years as it was denied loans. As all the assets of the BSNL is in the name of Telecom Department, there was some technical issues to state about the surety for loan. The issue could have been resolved if the department had given a letter of comfort.
After a lot of pressurising, the department gave the letter six months ago. But the banks denied loans even after this pointing out that the maximum loan limit for telecom sector has been exceeded. This resulted from the huge loans taken by private telecom companies.
It is learnt that BSNL is likely to issue debentures worth Rs 15,000 crores. Debentures will be guaranteed by the government. The management plans to utilise the fund raised from this and the amount saved through VRS for the better functioning of the company.