BSNL to Boost its Network Infrastructure and Launch 4G Services With Rs 4300 Crore

Bharat Sanchar Nigam Limited (BSNL) has been talking about its network expansion program for quite some time now, but it seems like the telco is finally looking to upgrade its infrastructure to meet the demand. The telco has now confirmed to borrow Rs 4,300 crore in the current financial year to fund its capital expenditure plans. However, at the same time, the telco also cleared that the new Rs 4,300 crore loan will not burden its debt level by any margin. As of March 2018, BSNL has a debt of Rs 9,000 crore which is significantly smaller than the private telecom operators.

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“We are the less leveraged telco in the present competitive scenario. For the current financial year, the Rs 4,300 crore borrowing is for meeting capex requirements. This is a reflection of our healthy financial position, despite the fact that we don’t have Mumbai and Delhi circles for operations, no adequate spectrum to launch 4G services and our huge Rs 16,000 crore a year wage bill is met with internal revenue generation,” Anupam Shrivastava, chairman and managing director of BSNL said Financial Chronicle.

According to the higher official, the wage bill is for nearly 200,000 employees working with the organisation and if the wage bill comes down by Rs 3,000 crore, the PSU will become a dividend paying company.

Furthermore, Shrivastava added that “The Rs 4,300 crore will go towards network expansion. Any rise in capex, due to some unforeseen developments, will be met through internal revenue generation from services.”