Cabinet approved third revival package for BSNL with total outlay of Rs. 89,047 cr

New Delhi: In a significant move, as part of the revival strategy, the Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the third revival package for BSNL with a total outlay of Rs. 89,047 crores. It includes an allotment of 4G/5G spectrum for BSNL through equity infusion.

The authorized capital of BSNL will be increased from Rs. 1,50,000 crore to Rs. 2,10,000 crore.

With this revival package, BSNL will emerge as a stable telecom service provider focused on providing connectivity to the remotest parts of India.

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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.
• Provide services/spectrum for Captive Non-Public Network (CNPN).

The government approved the first revival package for BSNL/MTNL in 2019. It amounted to Rs. 69,000 Crore and brought stability in BSNL/MTNL.In 2022, Government approved a second revival package for BSNL/MTNL amounting to Rs. 1.64 Lakh Crore. It provided financial support for capex, viability gap funding for rural landlines, financial support for de-stressing the balance sheet, settlement of AGR dues, merger of BBNL with BSNL, etc.

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As a result of these two packages, BSNL has started earning operating profits since FY 2021-22. The total debt of BSNL has reduced from Rs. 32,944 Crore to Rs. 22,289 Crore.

BSNL has achieved strong growth in the home fiber segment. It is providing more than 1 Lakh new connections every month. The total home fiber subscriber base of BSNL in May 2023 is 30.88 Lakh. Total revenue from home fiber last year was Rs. 2,071 Crore.

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