
The Union Cabinet has approved a Rs 1.64 lakh crore package for Bharat Sanchar Nigam Limited (BSNL), in another effort to revive the state-owned telecom firm. Additionally, Bharat Broadband Network Ltd (BBNL), which was set up to implement the ambitious BharatNet project, will be merged with BSNL.
The package has a cash component of Rs 43,964 crore and a non-cash component of Rs 1.2 lakh crore spread over four years, including the administrative allotment of 4G spectrum worth Rs 44,993 crore.
Telecom Minister Ashwini Vaishnaw said, “BSNL has actually turned around after the 2019 package. It has made an operating profit of almost Rs 1,000 crore… So, it is not that we have not seen any result of the previous package. It was a good result and that is what has given us hope and confidence that this is now a stable company.”
The Minister added, “With the first package, BSNL became a stable entity. With today's revival package it will become a viable entity.” In 2019, the Cabinet too cleared a package worth nearly Rs 70,000 crore for the revival of BSNL and MTNL, while also giving approval for the merger of the two entities.
“With these measures, BSNL will be able to improve the quality of existing services, roll out 4G services and become financially viable. It is expected that with the implementation of this revival plan, BSNL will turn around and generate net profit in the next 3-4 years,” the Minister said.
“The revival package will enable BSNL to improve services and generate a net profit in 3-4 years. Its 5G services launch will happen in the next 1.5-2 years. In 1-1.5 years its 4G telecom services will reach people.” On the merger of MTNL and BSNL, he said the plan was still there but “it needs complex financial restructuring,” he added.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.