Saturday, April 11, 2015

Fresh lifeline for MTNL post IT refund receipt

STRUGGLING PSU telecom major Mahanagar Telephone Nigam Limited (MTNL) shot up in Bombay Stock Exchange on April 10 after the government-owned entity received income tax refund worth Rs 129.82 crore for the assessment year 2006-2007.
MTNL has received income tax refund for...
the assessment year 2006-2007 amounting to Rs 129.82 crore, including Rs 21.18 crore towards interest on refund.
MTNL reported net loss of Rs 730.83 crore in Q3 December 2014 as against net profit of Rs 428.03 crore in Q3 December 2013. Net sales also declined 3.93 percent to Rs 813.92 crore in Q3 December 2014 over Q3 December 2013.
MTNL provides basic phone, internet and cellular mobile telephony services in Delhi and Mumbai. The Government of India (GoI) holds 56.25 percent stake in MTNL (as per the shareholding pattern as on 31 December 2014).
Earlier speculations were high that the government may shut down the telecom major following its persistent burden on the exchequer due to heavy losses. But putting an end to such speculative reports, Union minister Ravi Shankar Prasad said that there is no plan to shut down loss-making telecom company MTNL and the government was in fact taking various measures to revive it.
The Union minister made the comments following heavy industries minister Anant Geete's statement in Parliament that five public sector undertakings (PSUs) which are in the list of 65 sick PSUs would be closed down.
The list of sick PSUs include MTNL, Air India and Hindustan Shipyard. The five PSUs to be closed down include three HMT units, Geete had said. He, however, did not name the other PSUs which are slated to be shut.

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