Central government has collected about Rs. 12,500 crore or so from BSNL in the name of interest to a NOTIONAL LOAN of Rs. 7,500 crores given to the BSNL at the time of formation of the PSU. Neither any loan was demanded or given. There was no necessity for any loan also as BSNL was having about Rs.40,000 crore in the banks and was getting a a profit of Rs. 8,000 – 12,000 crore per year.
Interest for the imaginary loan was calculated at very high rate (probably 14% or so) and more than Rs. 12,500 crore was collected from BSNL. It was at a time when BSNL was profit making and financially strong.
Now BSNL is in financial difficulties. It is necessary to help the BSNL at this juncture. Hence the government should refund to BSNL all the collected interest, for which there was no justification. This will help BSNL in its financial crisis.