The Union Cabinet on Wednesday cleared a Rs 1.64-lakh crore package deal for revival of state-owned telecom service supplier Bharat Sanchar Nigam Ltd (BSNL), with the deal with contemporary capital for upgrading the loss-making firm’s community and allocating spectrum for it to supply 4G companies, de-stressing its steadiness sheet and augmenting its fiber community.
The four-year revival technique follows a 2019 booster, when the federal government had introduced a Rs 70,000-crore package deal primarily to cowl a voluntary retirement scheme for BSNL workers.
Of the overall revival package deal introduced Wednesday, Rs 43,964 crore shall be a money part, whereas the remaining Rs 1.2 lakh crore of non-cash part shall be unfold over 4 years. The Centre will make administrative allocation of spectrum BSNL wants to supply 4G companies. The allocation of spectrum in 900/1,800 MHz band at the price of Rs 44,993 crore can be via fairness infusion.
“The 2019 relief package gave BSNL a lifeline. Before that, it was making operational losses, which wasn’t sustainable. The package helped BSNL in becoming operational profitable. With the latest relief package, we expect BSNL to become net profitable in the next three-four years,” Minister of Communications Ashwini Vaishnaw instructed reporters.
To meet the projected capital expenditure (capex) for the subsequent 4 years, the Centre will fund capex of Rs 22,471 crore for creating 4G know-how stack, whereas offering Rs 13,789 crore to BSNL as viability hole funding for commercially unviable rural wireline operations completed between FY15 and FY20, he added.
Further, to boost the operator’s wireline providing, the Telecom Department has proposed the merger of Bharat Broadband Nigam Ltd (BBNL) with BSNL. BBNL is the nodal company for executing the BharatInternet undertaking. The infrastructure created underneath BharatInternet will proceed to be a nationwide asset, accessible on a non-discriminatory foundation to all of the telecom service suppliers.
To de-stress the steadiness sheet, Rs 33,404 crore statutory dues shall be transformed into fairness. The Centre can even present sovereign assure for elevating cash to repay present loans.
