{"id":197836,"date":"2022-07-29T18:37:05","date_gmt":"2022-07-29T13:07:05","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=197836"},"modified":"2022-07-29T18:37:05","modified_gmt":"2022-07-29T13:07:05","slug":"explained-three-reasons-why-a-revival-package-for-bsnl-was-cleared","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/explained-three-reasons-why-a-revival-package-for-bsnl-was-cleared\/","title":{"rendered":"Explained: Three reasons why a revival package for BSNL was cleared"},"content":{"rendered":"\n<p><b>Source: <\/b><span style=\"font-weight: 400;\">The post is based on the article <\/span><b>\u201cExplained: Three reasons why a revival package for BSNL was cleared\u201d <\/b><span style=\"font-weight: 400;\">published in<\/span><b> Indian Express <\/b>on<b> 28th July 2022.<\/b><\/p>\n<h5><b>What is the News?<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">The government has cleared Rs 1.64 lakh crore booster shot for state-owned loss-making telecom company Bharat Sanchar Nigam Ltd(BSNL).<\/span><\/p>\n<h5><b>What are the key aspects of BSNL\u2019s revival package?<\/b><\/h5>\n<p><a href=\"https:\/\/indianexpress.com\/article\/explained\/bharat-sanchar-nigam-ltd-bsnl-revival-package-plan-explained-8056269\/\"><b>Click Here to read<\/b><\/a><\/p>\n<p><b>Why has the government decided to infuse money into a loss-making company? <\/b><\/p>\n<p><span style=\"font-weight: 400;\">The move to further support BSNL and not monetise it like Air India is in deviation from the government\u2019s laid down privatization policy.\u00a0<\/span><span style=\"font-weight: 400;\">But the reasons to keep the BSNL afloat have its genesis in three main strategies of the government:\u00a0<\/span><\/p>\n<p><b>One, <\/b><span style=\"font-weight: 400;\">with BSNL, the government is able to push forward with its <strong>rural broadband agenda<\/strong>. Nearly 36% of BSNL\u2019s optical fiber customers are in rural areas and the operator assists the government in expanding to far-flung areas with low-income consumers for operations that are typically non-viable commercially.<\/span><\/p>\n<p><b>Two, <\/b><span style=\"font-weight: 400;\">unlike private telecom operators, BSNL has had a <strong>heavy dependence on domestic component manufacturers<\/strong> \u2014 something that also helps foster a vendor base in the country.With BSNL launching 4G services and subsequently 5G, this will also take the domestic component industry along with it.<\/span><\/p>\n<p><b>Lastly, <\/b><span style=\"font-weight: 400;\">the presence of BSNL\u2019s network assets in<strong> border areas and left-wing extremism-affected areas<\/strong> means that the government considers it a strategically important company for it to be privatized.<\/span><\/p>\n<table style=\"border-collapse: collapse; width: 100%;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\"><strong>Must read: <a href=\"https:\/\/forumias.com\/blog\/revival-package-for-bsnl-much-needed-bailout\/\">Revival package for BSNL: Much needed bailout<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h5><b>What could be the impact of this revival package?<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">With these measures, the Centre expects that BSNL will be able to improve the quality of existing services, roll out 4G services, and become financially viable.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It also expects that with the implementation of this revival plan, BSNL will turn around and earn a profit in 2026-27 (April-March).<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The post is based on the article \u201cExplained: Three reasons why a revival package for BSNL was cleared\u201d published in Indian Express on 28th July 2022. What is the News? The government has cleared Rs 1.64 lakh crore booster shot for state-owned loss-making telecom company Bharat Sanchar Nigam Ltd(BSNL). What are the key aspects&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/explained-three-reasons-why-a-revival-package-for-bsnl-was-cleared\/\">Continue reading <span class=\"screen-reader-text\">Explained: Three reasons why a revival package for BSNL was cleared<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[10500],"class_list":["post-197836","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1701107117},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/197836","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=197836"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/197836\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=197836"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=197836"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=197836"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}