The state telecom operator Bharat Sanchar Nigam Limited (BSNL) will get a revival package of Rs 89047 crore (USD 10.79 billion). This revival package was passed by the Union Cabinet, chaired by Prime Minister Narendra Modi, on June 7. The authorized capital of BSNL in total will be increased from Rs 150000 crore to Rs 210000 crore because of the package.
The revival package aims to make BSNL a stable telecom service provider by providing connectivity to the remotest parts of the country. The package also granted an allotment of 4G/5G spectrum for BSNL through equity infusion. There are four spectrum bands:700 MHz, 3300 MHz, 26 GHz, and 2500 MHz, which will get budgetary support worth Rs 46338.60 crore, Rs 26,184.20 crore, Rs 6,564.93 crore, and Rs 9428.20 crore, respectively.
This spectrum allocation will enable BSNL to:
- “Provide pan India 4G and 5G services.
- Provide 4G coverage in rural and uncovered villages under various connectivity projects.
- Provide Fixed Wireless Access (FWA) services for high-speed internet.
- Provide services/spectrum for Captive Non-Public Network (CNPN)”.
This is the third revival package for BSNL as part of the revival strategy. The telecom operator got its first package of Rs 69000 crore in 2019 to bring stability. Then last year, in July, BSNL received the assistance of Rs 1.64 lakh crore. As per the report, “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, the merger of BBNL( Bharat Broadband Network Limited), with BSNL, etc”.
These earlier two revival packages have resulted in increased revenue figures and reduced total debt. The revenue figures in FY 2020-21 was Rs 18595 Crore, and in FY 2022-23, it was Rs 20699 Crore. The total debt of BSNL has reduced from Rs. 32944 Crore to Rs 22289 Crore. Even the operating profits have increased from Rs 1177 crore in FY 2020-21 to Rs 1559 Crore in FY 2022-23.
These revival packages have resulted in the growth of BSNL. The state telecom provider is giving more than 1 Lakh new connections every month.
The press release also talked about the development of Indigenous 4G/5G technology under the Atmanirbhar Bharat vision of the Modi government. The Indigenous 4G/5G technology stack has been developed, and in the next months, it will be deployed across the country on the BSNL network.
The news of the package came after BSNL teamed up with leading software provider Tata Consultancy Services to help roll out a 4G network across the nation at a time when bigger competitors are deploying fast 5G networks. In this regard, BSNL has given advanced purchase orders of Rs 15000 crore for the deployment of the network BSNL.
Comments