The Centre on Wednesday approved a Rs 1.64-lakh crore revival plan for state-owned BSNL, throwing another lifeline to the ailing telecom firm that is now a minor player in the sector dominated by private players.
The revival package includes three important components: advancement of services and its quality, destressing balance sheet and strengthening fiber network by merging the Bharat Broadband Nigam Ltd (BBNL), formed to implement the BharatNet project, with BSNL.
Making the announcement after the Union Cabinet meeting, Telecom Minister Ashwini Vaishnaw said of the total package, Rs 43,964 crore will be cash component and Rs 1.2 lakh crore non-cash and spread over four years.
To meet the projected capital expenditure for the next four years, the government will fund capex of Rs 22,471 crore for developing 4G technology stack.
Vaishnaw said to de-stress the balance sheet, Rs 33,404 crore statutory dues will be converted into equity. And the government will provide Rs 13,789 crore to BSNL as viability-gap funding for commercially unviable rural wireline operations done during 2014-15 to 2019-20.
The government will also provide sovereign guarantee for raising money to repay current loans.
“It is expected that with the implementation of this revival plan, BSNL will turn-around and earn profit in FY 2026-27," Vaishnaw said.
The Union Cabinet also approved a project for saturation of 4G mobile services in uncovered villages across the country at a total cost of Rs 26,316 crore.
Published 27 July 2022, 12:13 IST