The Cabinet, chaired by Prime Minister Narendra Modi, today approved the third revival package for BSNL with the total outlay of Rs 89,047 crore. The package includes the allotment of 4G/5G spectrum for BSNL through equity infusion, an official press release said.
Calling it “a significant move,” the government said with this plan BSNL will emerge as “a stable telecom service” provider focused on providing connectivity to remotest parts of India.
The authorized capital of BSNL will now increase from Rs 150,000 crore to Rs 210,000 crore, the release said. 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 government had approved the first revival package for BSNL/MTNL in 2019. It amounted to Rs 69,000 crore and brought stability in BSNL/MTNL, the release said.
In 2022, the government approved the second revival package for BSNL/MTNL, amounting to Rs 1.64 lakh crore. It provided financial support for capex, viability gap funding for rural landlines, financial support for de-stressing the balance sheet, and settlement of AGR dues, merger of BBNL with BSNL, etc.
As a result of these two packages, BSNL has started earning operating profits since FY 2021-22, the release said. Total debt of BSNL has reduced from Rs 32,944 crore to Rs 22,289 crore, it added.