INDIA'S BSNL SIGNS MoU WITH DoT, NET PROFIT TO RISE 20% IN FY05.

NEW DELHI, March 26 Asia Pulse - The Indian government would give more financial powers to Bharat Sanchar Nigam Ltd (BSNL) for taking crucial decisions like formation of joint ventures as applicable to Navratna companies.

As per a Memorandum of Understanding signed between BSNL and the telecom department, "DoT will help BSNL to grant (sic) higher financial powers for making important decisions for formation of JVs as applicable to Navratna companies", a company statement said.

According to the MoU, which was signed between DoT secretary Nripendra Mishra and BSNL chairman and managing director V P Sinha, BSNL has committed to provide 75 per cent more telephones in the next fiscal in three service categories - mobile, fixed and WLL.

The revenue earning is expected to be 10 per cent higher than the likely revenues for 2003-4.

"Net profit is expected to be 20 per cent higher than expected profit for year 2003-04," it said.

The MoU also entails substantial reduction of faults in the next fiscal as also coverage of most of the remaining villages through Village Public Telephones (VPTs).

"A 100 per cent increase in internet connections is expected and substantial number of broadband connections are to be provided during the year 2004-05," it added.

(PTI) t 26-03 1045