Rs 1.64 lakh crore revival package for BSNL gets Cabinet nod
In a bid to revive state-owned telecom company Bharat Sanchar Nigam Limited (BSNL), the Union Cabinet on July 27 approved a ₹1.64 lakh crore package for its revival.
The package has a cash component of ₹43,964 crore and a non-cash component of ₹1.2 lakh crore for over four years.
The package will include administrative allotment of 4G spectrum worth ₹44,993 crore.
Bharat Broadband Network Ltd (BBNL), was set up to implement the ambitious BharatNet project, which will be merged with BSNL.
The revival package will enable BSNL to improve services and generate net profit in 3-4 years.
BSNL 5G services launch will happen in the next 1.5-2 years.
Its 4G telecom services will reach the people in 1-1.5 years.
Other key components of the package
Capex support of ₹22,471 crore
Viability gap funding of ₹13,789 crore for rural wireline operations
Debt structuring by raising of bonds with sovereign guarantee worth ₹40,399 crore
Financial support for Adjusted Gross Revenue (AGR) dues worth ₹33,404 crore.
The Cabinet had approved the allocation of 900/1800 MHz band spectrum worth ₹ 44,993 crore to support 4G services of BSNL.
This will allow BSNL to compete in the market and provide high speed data.
The government will make a capital expenditure of ₹22,471 crore over the next four years to "promote development and deployment of self-reliant 4G stacks".
BSNL was incorporated on 15th september 2000.
It is a 100% Govt of India owned Public Sector Undertaking.
It is a technology-oriented integrated telecom service providing company.
It provides Wire line Services, GSM Mobile Services including 2G, 3G, 4G & Value added Services (VAS), Internet and Broadband services, Wi-Fi services, Data Centre services etc.
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