Dismissing media reports as rumours, telecom major BharatSanchar Nigam Limited (BSNL) Assam Circle on Friday said there is no proposalto close down the company.

State-run operator Bharat Sanchar Nigam Ltd has said thereis no plan to shut the company down and it will continue to offer telecomservices in the country.

In a press statement, 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. But the Central government is actively preparing revival plans for the company."

The company's statement comes two days after the mediaagencies reported that the finance ministry has suggested that the sick PSU beclosed down.