Third revival package outlay stands at Rs.89,047 crore
Authorized Capital of BSNL to be increased from Rs.1,50,000 crore to Rs.2,10,000 crore
New Delhi, NFAPost: In a significant move, as part of the revival strategy, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi, approved the third revival package for BSNL with the total outlay of Rs. 89,047 crore.
It includes allotment of 4G/5G spectrum for BSNL through equity infusion. The authorized capital of BSNL will be increased from Rs. 1,50,000 crore to Rs. 2,10,000 crore.
With this revival package, BSNL will emerge as a stable telecom service provider focused on providing connectivity to remotest parts of India.
With this spectrum allotment, BSNL will be able to:
Provide pan India 4G and 5G services.
Provide 4G coverage in rural and uncovered villages under various connectivity projects.
Provide Fixed Wireless Access (FWA) services for high-speed internet.
Provide services/spectrum for Captive Non-Public Network (CNPN).
BSNL/MTNL revival:
Government had approved the first revival package for BSNL/MTNL in 2019. It amounted to Rs. 69,000 Crore and brought stability in BSNL/MTNL.
In 2022, Government approved second revival package for BSNL/MTNL amounting to Rs. 1.64 Lakh Crore. It provided financial support for capex, viability gap funding for rural landlines, financial support for de-stressing the balance sheet, and settlement of AGR dues, merger of BBNL with BSNL, etc.
As a result of these two packages, BSNL has started earning operating profits since FY 2021-22. Total debt of BSNL has reduced from Rs. 32,944 Crore to Rs. 22,289 Crore.
In May, BSNL also issued advanced purchase orders worth Rs 15,000 crore to a TCS-led consortium. ITI Limited also received a contract for supplying 4G telecom gears worth Rs 3,889 crore.
“The total order is of over Rs 19,000 crore,” a senior government official was quoted in the report by news agency PTI.
TCS and a consortium, including state-run telecom technology development organisation C-DoT, will deploy around 1,00,000 4G sites for BSNL.
“The consortium led by Tata Consultancy Services Limited has received an Advance Purchase Order valued over Rs 15,000 crore from BSNL, a 100 per cent Govt of India-owned Public Sector Undertaking, for the deployment of a 4G network across India,” TCS said in a regulatory filing.
A Group of Ministers approved the proposal on May 8. As per the approval, 20% of the total project has to be deployed by state-run ITI Limited.
ITI Ltd said it had bagged an advance purchase order worth Rs 3,889 crore from BSNL to deploy 23,633 sites for 4G services.
The supply period for the 4G telecom gear is 18-24 months under the contract for network deployment in the West Zone of BSNL operations.
