The Union Cabinet is expected to approve a revival package worth Rs 89,000 crore for Bharat Sanchar Nigam Limited (BSNL) today. This substantial amount will be utilized to enhance BSNL’s 4G and 5G services. The government recognizes the strategic importance of a government-owned telecommunications company like BSNL and aims for its flourishing, according to sources familiar with the matter.
It is worth noting that this is not the first revival package introduced by the government for BSNL. In July 2022, a revival package of Rs 1.64 lakh crore was announced with the objective of transforming the telecom PSU into a more profitable organization, enabling the provision of 4G and 5G services. This package consisted of a cash component of Rs 43,964 crore and a non-cash component of Rs 1.2 lakh crore, to be implemented over a four-year period.
The previous revival package primarily focused on advancing the quality and range of services, relieving the burden on BSNL’s financial statements, and expanding its optical fiber network. During the announcement, Union Minister Ashwini Vaishnaw stated that statutory dues amounting to Rs 33,404 crore would be converted into equity to alleviate the strain on BSNL’s balance sheet.
In addition, the government merged Bharat Broadband Network Limited (BBNL) with BSNL, providing the latter with an additional 5.67 lakh kilometers of optical fiber laid across 1.85 lakh village panchayats through the Universal Service Obligation Fund (USOF).
|Revival Package Component||Amount (in crore rupees)|
|Statutory Dues Converted||33,404|
|Optical Fiber Network (kms)||5.67 lakh|
|Village Panchayats Covered||1.85 lakh|
Please note that the provided information is based on the available sources and is subject to verification from official announcements.