New Delhi: The Union Cabinet on Wednesday approved Rs 1.64 lakh crore revival package for state-owned telco BSNL.
The revival package focuses on infusing fresh capital for upgrading BSNL services, allocating spectrum, de-stressing its balance sheet, and augmenting its fiber network by merging Bharat Broadband Nigam Ltd (BBNL) with BSNL.
Briefing reporters after the Cabinet meeting, Telecom Minister Ashwini Vaishnaw said that the package is aimed at making BSNL a sustainable entity and a vibrant telecom player.
"A revival package of Rs 1,64,156 crore for revival of BSNL has been approved. The first revival package for BSNL had come in 2019. ..After that BSNL has become a stable organisation," Vaishnaw said.
He further said that as a result of that revival package BSNL reached the position of operating profit after many years."After 2019 revival package BSNL has become a stable entity. It currently has a revenue of about Rs 19,000 crore and an operating expense of about Rs 18,000 crore. So, it has reached the level of operating profit of about Rs 1,000 crore. Now, hereon, today's revival package will work towards making BSNL a sustainable entity and a vibrant telecom player," the Minister said.
As per the package approved today, BSNL's existing services would be improved and in order to provide 4G services it will be allotted spectrum in 900/1800 MHz band administratively at the cost of Rs 44,993 crore through equity infusion.
"To promote indigenous technology development, BSNL is in process of deploying Atmanirbhar 4G technology stack. To meet the projected capital expenditure for next 4 years, Government will fund capex of Rs 22,471 crore," an official statement said.
Despite the commercial non-viability, BSNL has been providing wireline services in rural/remote areas to meet the social objectives of the Government. The statement said that government will provide Rs 13,789 crore to BSNL as viability gap funding for commercially unviable rural wire-line operations done during 2014-15 to 2019-20.
The authorized capital of BSNL will be increased from Rs 40,000 crore to Rs 1,50,000 crore in lieu of AGR (adjusted gross revenue) dues, provision of capex and allotment of spectrum.The other component of the revival package is de-stressing BSNL balance sheet. Accordingly, the government will provide sovereign guarantee for raising long term loan.
"To further improve the balance sheet, AGR dues of BSNL amounting to Rs 33,404 crore will be settled by conversion into equity. Government will provide funds to BSNL for settling the AGR/GST dues," the media release said.
To facilitate wider utilization of infrastructure laid under BharatNet, Bharat Broadband Network Ltd (BBNL) will be merged with BSNL. The infrastructure created under BharatNet will continue to be national asset, accessible on a non-discriminatory basis to all the telecom service providers, the government said.
"With these measures, BSNL will be able to improve the quality of existing services, roll out 4G services and become financially viable. It is expected that with the implementation of this revival plan, BSNL will turnaround and earn profit in FY 2026-27," said the government statement.
|