Government Approves Rs 89,047 Crore Revival Package for BSNL

The Union Cabinet, led by Prime Minister Narendra Modi, has approved the third revival package for Bharat Sanchar Nigam Limited (BSNL) with a total outlay of Rs 89,047 crore. This package aims to strengthen BSNL’s operations and competitiveness in the telecom market. The key components of the package include the allotment of 4G/5G spectrum to BSNL through equity infusion and the allocation of four spectrum bands, including the valuable 700 MHz band.

The revival package intends to boost BSNL’s capital and connectivity. The authorized capital of BSNL will be increased from Rs. 1,50,000 crore to Rs. 2,10,000 crore, providing the company with the necessary financial strength to compete with other major players in the industry. The package also enables BSNL to offer pan India 4G and 5G services, expand 4G coverage in rural and underserved areas, and provide Fixed Wireless Access (FWA) services and spectrum for Captive Non-Public Network (CNPN) purposes.

This is not the first revival package for BSNL, as the government had previously approved packages in 2019 and 2022. These packages have contributed to BSNL’s improved financial performance, including reduced debt and operating profits. The merger of Bharat Broadband Network Limited (BBNL) with BSNL has further strengthened the company’s position by providing access to an extensive optical fiber network deployed across village panchayats.

Despite reporting widened losses in FY23, primarily due to provision for Adjusted Gross Revenue (AGR) dues, BSNL has received viability gap funding and shown positive signs of financial progress. The government’s continued support and strategic interventions aim to position BSNL as a leading telecom service provider in India.

The approval of the third revival package reinforces the government’s commitment to strengthen the telecom sector and ensure reliable and affordable telecommunications services across the country. BSNL’s enhanced capital base and access to advanced spectrum bands will support the rollout of high-speed and reliable 4G and 5G services, bridging the digital divide and fostering digital inclusion.

By providing Fixed Wireless Access (FWA) services and expanding connectivity, BSNL aims to bring fast internet connectivity to remote areas, contributing to India’s digital transformation. The government’s support and strategic interventions will help BSNL emerge as a competitive player, catering to the evolving needs of consumers and businesses nationwide.

Rs 89,047 Crore Revival Package for BSNL – FAQs

Q1: What is the total outlay of the third revival package for BSNL?

Ans: The third revival package for BSNL has an overall budget of Rs 89,047 crore.

Q2: What are the key components of the revival package?

Ans: The allocation of four spectrum bands, comprising the 700 MHz, 3,300 MHz, 26 GHz, and 2,500 MHz bands, and the allocation of 4G/5G spectrum for BSNL through equity injection are the main elements of the revitalization package.

Q3: How has the merger with Bharat Broadband Network Limited (BBNL) benefited BSNL?

Ans: As a result of the merger with BBNL, BSNL now has access to a sizable optical fibre network that has been set up throughout village panchayats, enhancing its infrastructure and capacity to offer broadband services.

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  • Pritipalit

    Priti Palit, an accomplished edtech writer, boasts a wealth of experience in preparing candidates for multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti's expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.

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