NEW DELHI: The Union Cabinet is likely to have approved the Rs 89,000 crore revival package for Bharat Sanchar Nigam Limited (BSNL) today. June 7.
It's expected that the Rs 89,000 crore rehabilitation package for Bharat Sanchar Nigam Limited (BSNL) was approved by the Union Cabinet on Wednesday. The package will be utilised to improve the 4G and 5G services offered by BSNL. A government PSU in the telecom sector should prosper, according to the central government, sources said
However, this is not the first BSNL revitalization package that the Centre has announced. In July 2022, the Centre also approved a revival package for BSNL costing Rs. 1.64 lakh crore to offer 4G and 5G services and make the telecom PSU a more lucrative business. The package has a non-cash component of Rs 1.2 lakh crore spread over 4 years and a cash component at Rs 43,964 crore.
The package concentrated on improving the services and their quality, BSNL's financial stability, and the growth of its optical fibre network. BSNL's balance sheet will be relieved of stress by the conversion of statutory dues totaling Rs 33,404 crore into equity, said Union Minister Ashwini Vaishnaw at the time.
The government also merged BSNL and Bharat Broadband Network Limited (BBNL). Through the Universal Service Obligation Fund (USOF), BSNL acquired an additional 5.67 lakh km of optical fibre that was installed across 1.85 lakh village panchayats as a result of the merger.
BSNL, which stands for Bharat Sanchar Nigam Limited, is a prominent telecommunications company in India. It is a state-owned enterprise and one of the largest and oldest public-sector telecommunications companies in the country. BSNL provides a wide range of services, including landline and mobile phone connections, broadband internet, and enterprise solutions.
BSNL has played a significant role in connecting people across India, particularly in rural and remote areas where private telecom operators have limited presence. The company has a vast network infrastructure that spans across the country, making it a crucial player in India's telecommunications sector.