BSNL’s Rs 89,047 billion Revival Package is approved by the Union Cabinet

A Rs 89,047 crore revitalization package for Bharat Sanchar Nigam Limited (BSNL) was approved by the Union Cabinet on Wednesday. The deal comprises giving the telecom service provider access to 4G and 5G spectrum in exchange for an equity investment. Additionally, the government has agreed to raise BSNL’s allowed capital from Rs 1,50,000 crore to Rs 2,10,000 crore.

 

In a news statement, the government said that “BSNL will emerge as a stable telecom service provider focused on providing connectivity to the remotest parts of India.”

“With this spectrum allotment, BSNL will be able to provide pan-India 4G and 5G services, 4G coverage in rural and uncovered villages under various connectivity projects, Fixed Wireless Access (FWA) services for high-speed internet, and services/spectrum for Captive Non-Public Network (CNPN),” the release stated.

 

For BSNL, this is the third revival package. The government unveiled two packages, the first at Rs 69,000 crore in 2019 and the second around Rs 1.64 lakh crore in 2022. The second package offered financial assistance for capex, viability gap financing for rural landlines, de-stressing the balance sheet, payment of AGR dues, and the merging of BBNL with BSNL, according to the press statement. The first package gave stability to BSNL/MTNL.

 

Government records show that BSNL’s income increased throughout the course of the previous three fiscal years. From FY21 to FY23, its revenue increased from Rs 18,595 crore to Rs 20,699 crore. In FY 23, it also reported an operational profit of Rs 1,559 crore. The debt owed by BSNL has decreased from Rs 32,944 crore to Rs 22,289 crore, according to the government.