The Union Cabinet has approved a Rs 1,64,000-crore revival package for BSNL accordion to the announcement made by Telecom Minister Ashwini Vaishnaw on Wednesday. It will be utilised to de-stress the state-owned telecom company’s balance sheet and is also aimed at expanding BSNL’s fibre reach and improving the quality of the company’s services. The Rs 1.64-lakh-crore BSNL revival package comprises both cash and non-cash components.
Vaishnaw briefed the reporters on the decision which was taken by the Union Cabinet, and further added that the administrative allocation of spectrum for 4G and 5G services for BSNL has also been given go-ahead, apart from approving its infrastructure expansion and upgrade. The cash infusion, including spectrum, capital investments and viability gap funding (VGF), will be around Rs 44,000 crore. And, the remaining Rs 1.20 lakh crore will be a non-cash component.
The package will be spreading over four years, however, 70 per cent of the support will be extended within 1-2 years, whereas the results will be visible within the next two years. The taxpayers’ money will be spent to fulfil the cabinet’s dream of reviving BSNL. BSNL has a debt of 33,000 crores, and sovereign guarantee bonds will be issued by the state-owned firm to reduce the high cost of debt, Vaishnaw added.
BSNL offers telecom services (both landline and wireless) across India except in Mumbai and Delhi – the two cities where MTNL is the state-owned telco. The Union Cabinet has also approved the merger of BSNL and Bharat Broadband Network Ltd (BBNL), he said. BSNL has an optical fibre cable network of more than 6.83 lakh kilometres. After the merger, the state-owned company will get an additional 5.67 lakh kilometres of optical fibre, which is laid in 1.85 lakh village panchayats in the country using the Universal Service Obligation Fund (OSOF).
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