BSNL to get richer by Rs.1250 cr for installing rural wireline connections before 2002

Bharat Sanchar Nigam Limited (BSNL) will get subsidy support of Rs 1,250 crore from the Universal Service Obligation Fund (USOF) as a compensation for the deficit that the State-run telecom operator incurred in operating the rural wire-line connections installed prior to April 1, 2002.


The Cabinet, chaired by Prime Minister Narendra Modi, has given the approval for the subsidy support on Wednesday. The Cabinet also decided no further request from the PSU for financial or subsidy support from USOF on this count would be considered in future.

The industry regulator, Telecom Regulatory Authority of India (TRAI) had recommended Rs 15,000 crore as subsidy support for the period July 18, 2011, to July 17, 2012. It had also recommended Rs 1,250 crore for the timeframe of July 18, 2012 to July 17, 2013.

In July 2015, the Telecom Commission considered the findings of the evaluation/assessment study conducted by the National Institute of Communication Finance and recommended the subsidy support of Rs 1250 crore to BSNL.

BSNL will get the subsidy for 32.32 lakh rural wire-line connections installed across India before to April 1, 2002.

Founded in 2002, USOF has been providing BSNL subsidy for the rural wire-line connections installed prior to April 1, 2002. Media reports said that around Rs 8,692 crore has been provided to BSNL as USOF subsidy support till date for these rural wire-line connections.

Media reports said that an amendment will be made to Rule 526 of the Indian Telegraph Rules (ITRs), 1951 to make BSNL eligible for subsidy funding on nomination basis from USOF.

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16 Comments on "BSNL to get richer by Rs.1250 cr for installing rural wireline connections before 2002"


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September 22, 2016 9:26 pm 9:26 PM
BSNL is planning to provide better plan than Jio. Source: Leaked info from one BSNL employee who is my uncle. I won’t mention his name or mine, else you know what will happen to his job. 30GB 3G Data @Rs299, 60GB 3G Data @Rs499, 100GB 3G Data @Rs799, Unlimited 3G Data @Rs1099 will be there too. For free unlimited voice calls you have to add Rs75/month to all the limited data packs. These plans will start from January 2017. I’ll take the Rs499 plan for data & add Rs75 for calls. Which plan you will take? BSNL is also planning… Read more »
September 22, 2016 11:54 am 11:54 AM

BSNL is all set to offer free voice calling and plans cheaper than the new entrant Reliance Jio’s Rs 149 entry plan in India. Unlike Jio’s offer, the state-run telco’s offer will be available for 2G and 3G users.

The zero-voice-tariff plans will be launched in January.

September 22, 2016 11:06 am 11:06 AM

Bsnl charge Rs 150 per month from these poor rural people. Still get subsidy from Government

September 22, 2016 12:39 pm 12:39 PM

Bsnl should have made landline rental free with zero rental, one time security charges of 500. Then bsnl gets more landline users..overall usage revenue will be more than what it is now….first they should upgrade their systems and offer landline to landline [email protected] Landline+ [email protected] This is only way to sustain and counter jio..there is an advantage for bsnl as dr is not ICU charges from or to landline. So upgrade you old systems with that money…

September 22, 2016 5:27 pm 5:27 PM
You’re right. They should offer zero rental plans to rural areas as it is very difficult for them to contribute monthly fixed rental. 1. They should generate bills on quarterly basis (they can save money interms of paper, dispatch, man power and etc) for usage charges (might be 10p/min for all National calls) with zero rental. 2. They should offer Unlimited local calls @ Rs 99 with Zero Rental & 3. Unilimted Local+National Calls @ Rs 149/ Even though they are offering Unlimited calls, the number of calls they will make will be considerably very very less as poor people… Read more »
September 22, 2016 11:15 am 11:15 AM

150 is very less compared to cost of maintaining the line. Compare it with airtel