The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a revival package of Rs 89,047 crore for state-owned BSNL, including allotment of 4G/5G spectrum for BSNL through equity infusion, according to an official statement. The amount is part of the Rs 1.64-lakh-crore package announced last year for the revival of Bharat Sanchar Nigam Ltd (BSNL).
“The authorised 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,” according to the statement.
The government had announced a capital infusion of Rs 52,937 crore for the current financial year 2023-24, which was higher than the Rs 44,720 crore earmarked last year.
The statement said that with the latest spectrum allotment, BSNL will be able to: provide pan India 4G and 5G services. It can 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/spectrum for Captive Non-Public Network (CNPN).
The government had 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, the government approved 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, 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 FY 2021-22. Total debt of BSNL has reduced from Rs 32,944 crore to Rs 22,289 crore.
“BSNL has achieved strong growth in home fiber segment. It is providing more than 1 Lakh new connections every month. 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,” according to the statement.
Announcing the Rs 1.64-lakh-crore last year, Telecom Minister Ashwini Vaishnaw had said the package will be given in a staggered manner, spreading over four years. However, 70 per cent of the support will be extended within 1-2 years. The telecom minister had also said the result will be visible within the next two years.
Apart from the cash support, the government last year also said the administrative allocation of spectrum for 4G and 5G services for BSNL was given the go-ahead, along with approving its infrastructure expansion and upgrade.
Bharat Sanchar Nigam Limited (BSNL) had constantly been making losses. BSNL’s losses in 2019-20 had stood at Rs 15,500 crore, which halved to Rs 7,441 crore in 2020-21 after a revival package in 2019.
In 2019, the government had proposed a plan to merge Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Limited (MTNL), to revive both the state-owned companies that were reeling under losses. The government also aimed a Rs 38,000-crore asset monetisation programme, issuance of Rs 15,000 crore sovereign bonds and implementing a voluntary retirement scheme (VRS) for employees of BSNL and MTNL.
(Updated with official statement)
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