BSNL Reports its First Ever Loss in History

State-owned BSNL has reported its first ever loss in history, amounting to Rs 1,822.65 crore in the financial year 2009-10 against a profit of Rs.575 crore in 2008-09.

BSNL also suffers a revenue loss from Rs. 35,812 crore in 2008-09 to Rs.32,045.41 crore in 2009-10. BSNL’s total revenue of Rs 18,427.18 crore for the current financial year comes from its landline and mobile services, as being reported to the parliament.

According to Sachin Pilot, Minister of State for Communications and IT, BSNL has been in profit since its inception in 2000 (2000-01) up to the financial year 2008-09.

“The loss has occurred mainly due to reduction in revenue and increase in expenditure. Revenue has gone down due to drastic reduction in tariff, fierce competition as well as decline in fixed wireline connection due to preference of the subscribers for mobile,” Retired BSNL Chairman and Managing Director Kuldeep Goyal told reporters.