State owned Mtnl operated fixed line mobile service in delhi and Mumbai.
This state owned company is facing the brunt of typical characteristic of wage hikes in govt companies irrespective of performance of employees and profitability.
It incurred a net loss of Rs 894.95 crore for the third quarter ended December 31, 2009.
The company’s total income decreased to Rs 919.44 crore for the quarter under review from Rs 1124.82 crore during dec 2008 to dec 2009.
While recently mtnl has reported losses of Rs.1,573 crore during the fourth quarter ended March 31, 2010 against a net loss of Rs 73 crore during the corresponding quarter of the previous year.
According to the company this loss is due to arrangements of retirement pays, revised pay,arrears etc employee costs.
The increase is primarily due to wage revision of employees amounting to estimated arrears of Rs 740 crore and Rs 1,754 crore account of actuarial valuation for retirement benefits and for change in benefit of full pension for 20 completed years of service instead of the existing 33 years of completed service.
