Cabinet approves revival package of Rs 89,047 crore for BSNL
BSNL's Rs 1.64 Lakh Crore revival package was for four years, 70 percent of which was to be extended in the first two years.
The Cabinet Committee on Economic Affairs (CCEA) on June 7 approved a revival package of Rs 89,047 crore for state-run Bharat Sanchar Nigam Ltd (BSNL), Commerce Minister Piyush Goyal announced June 7, confirming CNBC-TV18 newsbreak.
The authorised capital of BSNL will be increased from Rs 1,50,000 crore to Rs 2,10,000 crore. The revival package will help BSNL emerge as a stable telecom service provider focused on providing connectivity to the remotest parts of India, the minister said.
The government had announced a capital infusion of Rs 52,937 crore during the fiscal year starting April 1, 2023, which was higher than the Rs 44,720 crore budget in financial year 2023.
The Telecom Minister mentioned during the discussion of Budget 2023-24 that BSNL's capital injection is included in the Rs 1.64 lakh crore revival package declared last year and that most of the balance sheet items of BSNL have already been addressed. The Rs 1.64 Lakh Crore revival package was for 4 years, 70 percent of which was to be extended in the first two years.
In accordance with the package's announcement, BSNL utilised sovereign guarantees to acquire new debt. As per telecom minister Ashwini Vaishnaw's statements, BSNL was to employ the allocated Rs 53,000 crore capital this year to construct new towers, enhance their 2G, 3G 4G and 5G networks, and drastically renovate their MTNL and BSNL landline systems.
According to recent reports, in a reversal of the earlier plan to combine the two state-owned telecommunication firms, the government might close down debt-ridden Mahanagar Telephone Nigam Ltd. (MTNL) and relocate its workforce and activities to Bharat Sanchar Nigam Ltd. (BSNL).
Recently, BSNL issued advanced purchase orders worth over Rs 15,000 crore to a consortium led by Tata Consultancy Services (TCS) for the deployment of 4G network across the country. BSNL had earlier awarded a contract worth Rs 550 crore to TCS for setting up 6,000 4G sites across India last month.
First Published: Jun 7, 2023 1:43 PM IST
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