Bharat Sanchar Nigam Ltd's profits have declined after its corporatisation, mainly on account of the sharp increase in wages, higher depreciation rates, provision of bad debts and wealth tax, Lok Sabha was informed on Wednesday.

"Profits of BSNL are declining compared to the department of telecom period. During 1999-2000, the profit was Rs 11,975 crore (Rs 119.75 billion) which declined to Rs 6,312 crore (Rs 63.12 billion) in 2001-02," Minister of State for Communications and IT, Ashok Pradhan said in a written reply.

He said this was on account of the increase in expenditure due to a sharp increase in wages being paid to the Group C and D staff, higher depreciation rates, provision of bad debts and wealth tax.

The company also has to pay income tax in the corporatisation era, he said, adding that the revenue per user of BSNL had declined due to the drastic reduction in call charges. Therefore, despite the increase in lines, the total revenues remained the same.

He said the government had asked ITI Ltd to submit a comprehensive revival plan along with various initiatives taken by the company, including the cost cutting measures.

Pradhan said MTNL has planned to introduce roaming to pre-paid customers in selected networks, shortly.

BSNL has planned to add 367.6 lakh (36.76 million) direct exchange lines including 223.84 lakh (22.38 million) mobile phones and 62.93 lakh (6.3 million) WLL phones during the 10th Plan period, he said.