Cabinet approves revival package of BSNL amounting to Rs 1.64 Lakh Cr.

Source: The post is based on the article “Cabinet approves revival package of BSNL amounting to Rs 1.64 Lakh Cr.” published in PIB on 27th July 2022.

What is the News?

The Union Cabinet has approved the revival package of BSNL amounting to Rs 1.64 Lakh Crore.

What are the key aspects of BSNL’s revival package? 

Upgrading BSNL Services

Administrative allotment of Spectrum: To improve existing services and provide 4G services, BSNL will be allotted Spectrum in the 900/1800 MHz band. With this, BSNL will be able to compete in the market and provide high-speed data using their vast network including in rural areas.

Financial support for capex: Government will fund capital expenditure to BSNL for the deployment of indigenous 4G stack by the operator.

Viability gap funding for rural wireline operations: Despite the commercial non-viability, BSNL has been providing wireline services in rural/remote areas to meet the social objectives of the Government. The government will provide funds to BSNL as viability gap funding for commercially unviable rural wire-line operations done during 2014-15 to 2019-20.

De-stressing the BSNL balance sheet

Debt structuring: Government will provide a sovereign guarantee to BSNL and MTNL For raising long-term loans. This will help restructure existing debt and de-stressing the balance sheets.

Financial support for AGR dues: To further improve the balance sheet, Adjusted Gross Revenue (AGR) Dues of BSNL will be settled by conversion into equity. 

Augmenting BSNL Fiber Network

Merger of BBNL and BSNL: To facilitate wider utilization of infrastructure laid under BharatNet, Bharat Broadband Network Ltd(BBNL) will be merged with BSNL. The infrastructure created under BharatNet will continue to be a national asset, accessible on a non-discriminatory basis to all the Telecom Service Providers