Chennai, July 2 (IANS) Dismissing media reports as rumours, telecom major Bharat Sanchar Nigam Limited (BSNL) Tamil Nadu Circle on Tuesday said there is no proposal to close down the company.

In a statement issued here, the company said: "There is no proposal to close down BSNL as wrongly reported in a section of the press. Due to stiff competition and the lowering of tariff, BSNL is facing a funds crisis for the last few months."

According to the statement, the Central government is actively preparing a revival plan for BSNL for approval by the Cabinet.

--IANS vj/mag/