The Union Cabinet approved a Rs 1.64 lakh crore revival package for the government-owned Bharat Sanchar Nigam Limited (BSNL), Telecom Minister Ashwini Vaishnaw said on Wednesday, 27 July.
Moreover, the government approved the merger of BSNL and Bharat Broadband Network Limited (BBNL), the government-owned broadband infrastructure provider, for improving fibre reach.
The package comprises of three main elements – improving the quality of BSNL services, de-stressing the balance sheet, and expanding the company’s fibre reach, the minister claimed.
The package will include cash support worth Rs 43,964, aimed at spectrum allocation, capital expenditure, and viability gap funding, and non-cash support of Rs 1.20 lakh crore, the telecom minster added.
To de-stress the balance sheet, Rs 33,000 crore statutory dues will be converted into equity and a similar amount of bank loans will be repaid through the issue of low-interest bonds.
While the revival programme is planned for a four-year period, Vaishnaw claimed that it will be implemented within the first two years.
The minister added that after the implementation of the revival package, BSNL will be able to increase its average revenue per user to Rs 170-180.
Vaishnaw aded that administrative allocation of spectrums for BSNL’s 4G and 5G services has also been approved by the Cabinet.
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