New Delhi, Aug 3 - State-run telecom operator Mahanagar Telephone Nigam Limited's (MTNL) net profit nose-dived 63 percent in 2008-09 to Rs.211.7 crore from Rs.586.8 crore the previous fiscal.

The public sector undertaking's turnover also fell 1.4 percent to Rs.5,250 crore in the period under review from Rs.5,329.9 crore the year before.

The government has earmarked Rs.15,740.02 crore ($3.2 billion) for the two state-run telecom majors including MTNL in the budget for 2009-10.

The other state-owned operator, Bharat Sanchar Nigam Limited, has been allocated Rs.14,015 crore, while Rs.1,725.02 crore will be provided to fund MTNL's expenses.