BSNL Gets Rs 1.67 Lakh Crore Relief Package: Understand in 8 Points

On Wednesday, the Cabinet approved the relief package for BSNL (Bharat Sanchar Nigam Limited) worth Rs 1.67 lakh crore. A note from the government said that the presence of BSNL acts as a market balancer in the telecom market. Thus the Union Cabinet led by Narendra Modi has approved the revival package of BSNL amounting to Rs 1.67 lakh crore. The revival measures will focus on infusing fresh capital into state-run telco for upgrading the services of BSNL, de-stressing the balance sheet, allocating spectrum, and a merger with the BBNL (Bharat Broadband Network Limited).

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Take a look at the details of the relief package and how it will impact BSNL.

A) Upgrading Services of BSNL:

Firstly, BSNL will be allocated 4G spectrum in the 900 MHz and 1800 MHz bands for providing 4G services in India. The cost of this will be Rs 44,993 crore.

Secondly, since BSNL is deploying an indigenously developed 4G stack, the government will fund its capex needs amounting up to Rs 22,471 crore in the next four years.

Thirdly, BSNL will receive Rs 13,789 crore from the Indian government in the form of viability gap funding for offering services in areas where there is no profitability or commercial interest present. For this, the government will give BSNL Rs 13,789 crore.

Fourth, the government has increased the authorised capital of BSNL from Rs 40,000 crore to Rs 1,50,000 crore in lieu of AGR (Adjusted Gross Revenue) dues, allotment of spectrum and provision of capex.