The government is considering the sale of 10 per cent equity stakes in state-owned Bharat Sanchar Nigam Ltd (BSNL) through an initial public offer (IPO) of shares 10% stake in the company to raise Rs. 40,000 crore ($10 Billion).

The company has large-scale growth plans. It is going to expand its offering on Wireless in Local Loop network (WLL) on the CDMA platform. It will also be soon announcing a 25 million GSM line tender to upgrade its network in the southern India.

BSNL’s revenue stood at Rs39,750 crore in 2006-07, with net profit of Rs7,805 crore. The PSU has an immediate investment plan of Rs15,000 crore to expand its GSM mobile network across the nation.

However, the issue is got stuck in controversy, given political opposition to disinvestment and also BSNL’s employee union. Now it seems that things are moving again, with negotiations with the employee unions reaching a conclusive stage.

In a significant development, state-owned telecom giant Bharat Sanchar Nigam (BSNL) may go public and list at bourses with the trade unions likely to respond positively to the government’s call in this regard.

BSNL, going by the estimates, has been valued at a whopping $100 billion (over Rs 4,00,000 crore) and dilution of 10% equity may fetch over Rs 40,000 crore, which can be used by the PSU for expansion of services.

According to an official statement, “Unions will respond positively to a suggestion for listing of BSNL before June 3, which will help BSNL in getting Navratna status, which is very essential in order to maintain the image of BSNL and its survival and growth.”

The decision came after the representatives of trade unions met communication and IT minister A Raja here on Thursday evening and discussed various issues including a 50% dearness allowance.

“The meeting ended on a positive note with a collective decision on some issues, which included 50% industrial dearness allowance (IDA) merger orders that will be issued by BSNL,” the statement said.

The public might soon have an opportunity to invest through an IPO in one of the best PSU’s.