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Economy
Mahesh

28/07/22 14:04 PM IST

Cabinet approves revival package of BSNL

In News 
  • To make BSNL financially viable, the Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the revival package of BSNL amounting to Rs 1.64 Lakh Cr.
Upgrading BSNL services
    • Administrative allotment of Spectrum: To improve existing services and provide 4G services, BSNL will be allotted Spectrum in 900/1800 MHz band administratively at the cost of Rs 44,993 Cr through equity infusion. 
    • Financial support for capex: To promote indigenous technology development, BSNL is in process of deploying Atmanirbhar 4G technology stack. To meet the projected capital expenditure for next 4 years, Government will fund capex of Rs 22,471 Cr.
    • Viability gap funding for rural wireline operations: Government will provide Rs 13,789 Cr to BSNL as viability gap funding for commercially unviable rural wire-line operations done during 2014-15 to 2019-20.
    • Increase in authorized capital: The authorized capital of BSNL will be increased from Rs 40,000 Cr to Rs 1,50,000 Cr in lieu of AGR dues, provision of capex and allotment of spectrum.
    • Debt structuring: Government will provide sovereign guarantee to these PSUs for raising long term loan. They will be able to raise long term bonds for an amount of Rs 40,399 Cr.
    • Financial support for AGR dues: To further improve the balance sheet, AGR dues of BSNL amounting to Rs 33,404 Cr will be settled by conversion into equity. Government will provide funds to BSNL for settling the AGR/GST dues.
    • Merger of BBNL and BSNL: To facilitate wider utilization of infrastructure laid under BharatNet, Bharat Broadband Network Ltd (BBNL) will be merged with BSNL.
    Source - PIB 

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