3rd revival package for BSNL with total outlay of Rs 89,047 Cr
In a significant move, as part of the revival strategy, the Cabinet today approved the third revival package for BSNL with a total outlay of 89 thousand 47 crore rupees. It includes an allotment of 4G and 5G spectrum for BSNL through equity infusion. The authorized capital of BSNL will be increased from one lakh 50 thousand crore rupees to two lakh ten thousand crore rupees.
With this revival package, 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, provide 4G coverage in rural and uncovered villages under various connectivity projects, provide Fixed Wireless Access FWA services for high-speed internet and provide services and spectrum for Captive Non-Public Network CNPN.
The Government approved the first revival package for BSNL and MTNL in 2019. It amounted to 69 thousand crore rupees and brought stability to BSNL and MTNL.
In 2022, Government approved a second revival package for BSNL and MTNL amounting to 1.64 Lakh Crore rupees. 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 Financial Year 2021-22. The total debt of BSNL has reduced from 32 thousand 944 Crore rupees to 22 thousand 289 Crore rupees.