IPO may be required for BSNL: Goyal

Faced with a stagnating turnover and a possible marginal dip in profitability in the current financial year, government-owned BSNL may have to take the IPO route to fund future expansion plans.

"The IPO may be required for BSNL", chairman and managing director of BSNL Kuldeep Goyal said today, speaking on the sidelines of a seminar organised by TDSAT.

Goyal said that during 2008-09 the company's turnover was likely to hover at last year's level of Rs 40,000 crore. He said that stagnation in revenue would be primarily due to falling tariffs and that there could also be a dip in profitability due to rising expenses.

Last financial year, BSNL's net profit was Rs 7,800 crore. While BSNL plans to spend Rs 18,000 crore during 2008-09 for various developmental plans, the investment figure for 2010 has been pegged at Rs 60,000 crore.