The Hindu Business Line : DoT seeks Navratna tag for BSNL yet again

The Department of Telecom has decided to once again push the case of Bharat Sanchar Nigam Ltd for getting a berth in the elite club of Navratna companies. This is the ninth time since 2001 that the DoT will be approaching the Department of Public Enterprise seeking an upgradation in the telecom operator's status.

On previous occasions BSNL had failed to cut the grade set for Navratna companies. However, it received a Mini Ratna category 1 Public Sector Enterprise status on February 21, 2006. The decision to re-apply was taken at a meeting of the Telecom Commission held on September 25.

There are only nine Navratna companies, including Bharat Heavy Electricals Ltd, Bharat Petroleum Corporation Ltd, Gas Authority of India Ltd and Mahanagar Telephone Nigam Ltd. Previously, BSNL failed to get Navratna status because it did not get `excellent' or `very good' rating in three of the past five years. DoT sources said that this time BSNL's case is stronger since it is already a Mini Ratna company, apart from reporting more than 10 per cent growth in revenues.

The company expects the Navratna status to give it more autonomy in decision-making to take on competition from private operators.

Navratna companies are allowed to invest up to Rs 1,000 crore in establishing joint ventures or setting up subsidiaries in India or abroad. The board of directors have powers to execute mergers and acquisitions without prior approval from the Government.

The board also has power over appointments and transfers of executives below board-level. The BSNL move comes even as the DPE has raised question marks over continuing Navratna status for the other telecom public sector company MTNL owing to its poor performance over the last few years. DoT is also opposing the proposal to downgrade MTNL's status by DPE.

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