The Cabinet, on Wednesday, has approved the third revival package for Bharat Sanchar Nigam Limited (BSNL) with a total outlay of ₹89,047 crore that includes allotment of 4G/ 5G spectrum for BSNL through equity infusion.
The authorised capital of BSNL will be increased from ₹1,50,000 crore to ₹2,10,000 crore, a government statement said.
“With this revival package, BSNL will emerge as a stable telecom service provider focused on providing connectivity to the remotest parts of India,” it said.
Out of the total budget allotment of ₹89,047 crore, it includes ₹46,338.60 crore for allotment of 10MHz spectrum in the 700 MHz band paired in 22 licensed service areas (LSAs); ₹26,184.20 crore for allotment of 70MHz of spectrum in 3300 MHz band in 22 LSAs; ₹6,564.93 crore for allotment of 800 MHz of 26GHz in 21 LSAs and 650 MHz in one LSA; and ₹9,428.20 crore for allotment of 20MHz in six LSAs and 10MHz in 2 LSAs in the 2500MHz.
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, and provide services/spectrum for captive non-public network (CNPN).
The Government had approved the first revival package for BSNL/MTNL in 2019, which amounted to ₹69,000 crore and brought stability in BSNL/MTNL.
In 2022, the government approved the second revival package for BSNL/MTNL amounting to ₹1.64 lakh crore and 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, and merger of BBNL with BSNL.
“As a result of these two packages, BSNL has started earning operating profits since FY22. The total debt of BSNL has reduced from ₹32,944 crore to ₹22,289 crore,” the statement added.