BSNL asks government for reduction in its equity base

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BSNL asks government for reduction in its equity base

April 15, 2005

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Bharat Sanchar Nigam Limited (BSNL) has sent a proposal to the government seeking a reduction in its equity base from the current Rs 50 billion to about Rs 30 billion. The move will allow the company to have greater cash flows for its investments. Currently, BSNL has one of the largest equity bases among public sector companies. This results in high outflow of money in the form of dividends and payouts to the government. The company has asked the government to reduce its equity and convert the rest into loans.