July 28, 2022
2 mins read

BSNL gets a lifeline

To improve existing services and for providing 4G speed, BSNL will be allotted Spectrum in 900/1800 MHz band administratively at a cost of Rs 44,993 crore through equity infusion…reports Asian Lite News

The Union Cabinet on Wednesday approved a revival package of Rs 1.64 lakh crore for loss-making state-run telecom operator Bharat Sanchar Nigam Limited (BSNL).

The Cabinet also approved the merger of BSNL and BBNL (Bharat Broadband Network Limited).

Telecom Minister Ashwini Vaishnaw, on Wednesday said that the package will have three main elements – it will aim at improving the quality of BSNL services, it will be used to de-stress the balance sheet, and will attempt to expand the company’s fibre reach.

Revival measures approved by the Cabinet focus on infusing fresh capital for upgrading BSNL services, allocating spectrum, de-stressing its balance sheet, and augmenting its fibre network by merging Bharat Broadband Nigam Limited (BBNL) with BSNL.

To improve existing services and for providing 4G speed, BSNL will be allotted Spectrum in 900/1800 MHz band administratively at a cost of Rs 44,993 crore through equity infusion. With this spectrum, BSNL will be able to compete in the market and provide high speed data using their vast network even in rural areas.

To promote indigenous technology development, BSNL is in the process of deploying Atmanirbhar 4G technology stack. To meet the projected capital expenditure for the next four years, the government will fund capex of Rs 22,471 crore. This will be a significant boost to development and deployment of Atmanirbhar 4G stack.

Despite the commercial non-viability, BSNL has been providing wireline services in rural/remote areas to meet the social objectives of the government.

The government will provide Rs 13,789 crore to BSNL as viability gap funding for commercially unviable rural wire-line operations done during 2014-15 to 2019-20.

It will also provide sovereign guarantee to these PSUs for raising long term loan. They will be able to raise long term bonds for an amount of Rs 40,399 crore. This will help restructure the existing debt and de-stress the balance sheet.

To further improve the balance sheet, AGR dues of BSNL amounting to Rs 33,404 crore will be settled by conversion into equity. The government will provide funds to BSNL for settling the AGR/GST dues.

ALSO READ: Airtel sets up India’s 1st private 5G network

Previous Story

‘Overwhelming’ response to 5G auction

Next Story

Inflammatory diet may lead to depression

Latest from Business

Microsoft Cuts Deep

The fresh job cuts come less than two months after Microsoft announced it was laying off more than 6,000 employees…reports Asian Lite News Microsoft is set to cut around 9,000 jobs —

Northeast Is Growth Engine

Scindia also provided updates on the government’s efforts to facilitate the entry of SpaceX’s Starlink service into India. “All due diligence from the Ministry’s side is complete Union Minister for Communications and

India to Empower Global South

India is emerging as a pivotal force in the global transition to clean energy, with Union Minister for New and Renewable Energy, Pralhad Joshi, asserting that the country is empowering the Global

Maruti’s Global Push Breaks Record

June shipments hit 37,842 units, signalling robust global demand Maruti Suzuki India recorded its highest-ever monthly exports in June, shipping 37,842 units and marking a new milestone that highlights the company’s expanding

India Bats for Fairer Global Finance: FM Sitharaman

FM Sitharaman stated that we believe that optimal regulation fosters innovation and stability….reports Asian Lite News India supports reforms to the international financial architecture to enhance inclusivity and equity, including Multilateral Development
Go toTop

Don't Miss

Aim for $450-$500 bn exports next year: Goyal

The minister also said that engineering goods have much more

Britannia Marie Gold’s My Startup campaign for Indian homemakers

Speaking on the launch of Britannia Marie Gold My Startup