Govt approves third revival package for BSNL, allots 4G/5G spectrum for enhanced connectivity

New Delhi: In a significant development aimed at revitalising the state-owned telecom service provider, Bharat Sanchar Nigam Limited (BSNL), the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the third revival package for BSNL, said a statement by the Ministry of Communications on Wednesday. The package, with a total outlay of Rs 89,047 crore, includes the allotment of 4G/5G spectrum through equity infusion, it added.

The authorised capital of BSNL will be increased from Rs 1,50,000 cr to Rs 2,10,000 cr

As part of the revival plan, the authorised capital of BSNL will be increased from Rs 1,50,000 crore to Rs 2,10,000 crore, further strengthening the company's financial standing, said the statement. With this infusion of funds and the allocation of spectrum, BSNL is expected to transform into a stable telecom service provider, focusing on providing connectivity to even the remotest parts of India, it added.

Spectrum allotment will enable BSNL to deliver pan-India 4G & 5G services

The spectrum allotment will enable BSNL to deliver pan-India 4G and 5G services, ensuring comprehensive coverage across the country. In particular, it will facilitate the provision of 4G connectivity in rural areas and underserved villages under various connectivity projects, said the statement. Additionally, BSNL will be able to offer Fixed Wireless Access (FWA) services, providing high-speed internet connectivity. The spectrum will also be utilised to support Captive Non-Public Network (CNPN) services, it added.

Total debt of BSNL has been reduced from Rs 32,944 cr to Rs 22,289 cr

The first revival package for BSNL/MTNL was approved by the government in 2019, amounting to Rs 69,000 crore. This initial package played a crucial role in stabilising BSNL/MTNL, said the statement. Subsequently, in 2022, the government approved a second revival package worth Rs 1.64 lakh crore. This package provided financial support for capital expenditure, viability gap funding for rural landlines, assistance in de-stressing the balance sheet, settlement of Adjusted Gross Revenue (AGR) dues, and the merger of BBNL with BSNL. As a result of these two packages, BSNL has already started earning operating profits since the fiscal year 2021-22. Moreover, the total debt of BSNL has been reduced from Rs 32,944 crore to Rs 22,289 crore, it added.

BSNL has witnessed significant growth in its home fiber segment, consistently adding over 1 lakh new connections every month, said the statement. As of May 2023, the total home fiber subscriber base of BSNL stands at 30.88 lahks. The revenue generated from home fiber services in the previous year amounted to Rs. 2,071 crores, it added.

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