Hit by a rise in expenses arising out of payment of arrears, Bharat Sanchar Nigam Ltd on Tuesday reported a 76 per cent dip in its profit for 2002-03 to Rs 1,444 crore (Rs 14.44 billion), and said it is formulating a voluntary retirement scheme package to trim its workforce.

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"The profit for 2002-03 stood at Rs 1,444 crore compared to Rs 6,000 crore (Rs 60 billion) in the previous year. This has been mainly on account of increase in establishment costs arising out of arrears, and also due to increase in operational expenses and also pensions and salaries," BSNL chairman and managing director Prithipal Singh told reporters in New Delhi.

The corporation's turnover, however, jumped five per cent to Rs 25,892 crore (Rs 258.92 billion) during 2002-03.

"This year also we expect to see an increase in turnover on similar lines as 2002-03," he said, adding that the corporation expected to double profit to Rs 3000 crore (Rs 30 billion) in the current financial year.

The financial results of BSNL have been approved by the shareholders at the corporation's 3rd annual general meeting, which also approved a dividend of Rs 250 crore (Rs 2.50 billion).

He said as against 44 lakh (4.4 million) connections given out in 2002-03, this year the company was eyeing 60 lakh (6 million) connections, a major chunk of which would be wireless.

Singh said that a VRS scheme was being worked out by BSNL.

"The scheme has been almost finalised and we have to hold meetings with the unions because it has to be acceptable to them also. 2-3 packages are being worked out, and we hope to firm it up in another two to three months," Singh said.