Cabinet Approves Revival Package For BSNL:

A package worth 1.64 lakh crores has been authorised by the Central government to resurrect BSNL, a public sector telecom service. According to Telecom Minister Ashwani Vaishnav, the revitalization plan has been approved by the cabinet for implementation over the next four years. With the help of this additional financing, services will be improved, spectrum will be allocated, and the balance sheet will be fortified. Furthermore, these funds can be used to combine BSNL with Bharat Broadband Nigam Limited (BBNL). 1.64 lakh crore would be given to BSNL in cash out of the total of Rs. 43,964 crores, and the remaining Rs. The minister stated that there would be another way to deliver the 1.2 lakh crores.

He claims that the government will also grant BSNL the necessary spectrum in order for it to provide 4G services. Spectrum will be made accessible between 900 and 1800 MHz. In its substitute, 44,993 billion rupees in equity funds will be made available. The development of the 4G technology stack will cost BSNL Rs. Vaishnav revealed a sum of 22,471 crores. The declaration states that this capital expenditure will be made within the following four years.

A further Rs. 13,789 crore would be provided under the viability gap funds. He claims that the basis for providing this money is because BSNL operated unsuccessful rural wirelines from 2014–2015 to 2019–2020. In order to strengthen the balance sheet, an additional Rs. 33,404 crore would be given and converted into equity. A sovereign guarantee is offered to raise new debt to pay down old debt.

BBNL and BSNL will merge in order to better utilise the BharatNet infrastructure. According to the minister, this infrastructure will be accessible to all of the country’s telecom service providers.