Rs 1.64 lakh crore revival package for BSNL gets Cabinet nod

Tags: Economy/Finance National News

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.

Important facts

  • 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.

Capex support 

  • 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".

About BSNL

  • 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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