NEW DELHI: In a much-needed relief, the Cabinet on Wednesday approved the third revival package of Rs 89,047 crore for ailing state-owned Bharat Sanchar Nigam Limited (BSNL). This package is for the allocation of spectrum for the launch of 4G and 5G services across the country, as it is facing stiff competition from rival Bharti Airtel and Reliance Jio. BSNL is yet to unveil its 4G or 5G network even as the two private telecom service providers are already rolling out 5G services across the country.
This is one of the reasons that the company is losing its subscribers rapidly. However, this package will help the company to speed up its 4G and 5G rollout in the country.“With this spectrum, BSNL will provide India with 4G and 5G services, including Mumbai and Delhi. The company will also provide 4G coverage in uncovered areas, captive network and fixed wireless access for high-speed internet,” said telecom minister Ashwini Vaishnaw, while announcing the package.
This is not the first revival package for the telco. The government had approved the first revival package of Rs 69,000 crore, which the government believes will give stability to the company. In 2022, the government approved the second revival package of Rs 1.64 lakh crore. The package comprised a cash component of Rs 43,964 crore and non-cash component worth Rs 1.2 lakh crore spread over a duration of four years.
In the current package, the telco received four 700 MHz worth Rs 46,338.60 crore, 3,300 MHz for Rs 26,184.20 crore, 26 GHz for Rs 6,564.93 crore, and 2,500 MHz worth Rs 9,428.20 crore. With this package, BSNL’s total authorised capital has been increased from Rs 1.50 lakh crore to Rs 2.10 lakh crore.
According to the government, 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 with BSNL, among other things.
Following these packages, the telecom service provider has started earning operating profits since FY22.
The company’s total debt has reduced from Rs 32,944 crore to Rs 22,289 crore.“In the next three years, the company will be debt free,” said Vaishnaw.