Union Cabinet approves package of Rs 1.64 lakh crore for BSNL’s revival

The Government has decided to execute administrative allocation of spectrum to BSNL. This would be done to facilitate and expand 4G services. Telecom Minister Ashwini Vaishnaw, informed this on Wednesday, July 27, 2022. 

The Union Cabinet approved a package of Rs 1.64 lakh crore today for the revival of the state-owned telecom firm, BSNL. The package included three elements. These are: to improve services, de-stress balance sheet and expansion of fibre network. 

An amount of Rs 33,000 crore statutory dues will be converted into equity to de-stress the balance sheet. A similar amount of bank loans will be repaid through low interest bonds issues. Additionally, the minister also informed that BBNL will be merged with BSNL. 

The Government, on October 23, 2019, approved a revival plan for Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL). It was also approved that spectrum for the two firms for providing 5G and 4G services would be administratively allocated. Following this BSNL and MTNL would roll out 4G and 5G services on techno-commercial considerations. 

BSNL earlier sought 2100 MHz spectrum for pan-India operations except in Rajasthan. On the other hand MTNL had sought 1800 MHz spectrum for Delhi and 2100 MHz for Mumbai. 

With this allocation, revival and new performance by BSNL would be expected in the Telecommunication sector.