Government allocates Rs 82,900 crore for BSNL in budget

The Government of India has increased the financial support for BSNL to Rs 82,916 crore in the 2024-25 Budget. In the previous budget, 2023-24, it was Rs 52,937 crore. Experts are of the opinion that a major portion of Rs 82,916 crore may be directed towards the allocation of 4G and 5G spectrum, enhancing BSNL’s network capabilities.   

Last year the Cabinet approved a third revival package for BSNL with an outlay of ₹89,000 crore for allotment of 4G and 5G spectrum through equity infusion. The approval set the stage for the struggling telecom operator to launch 4G and eventually, 5G services. Part of this outlay is likely accounted for in the interim Budget.

Former BSNL Chairman and MD RK Upadhay welcomed this increase in capital infusion by the Centre: “Every year what allocation the government is for specific purposes. This years allocation is for network and spectrum costs. Broadly speaking, are we as a country to remain dependent foreign manufacturers, we also need to have our indigenous products. We need homegrown networks, and BSNL’s 4G rollout with TCS provides us that.”

Another expert noted however that increase in capital infusion does not necessarily mean that the rollout for the 4G network will be completed in the 2023-24 period or any tangible gains in giving Indians access to 4G telephony. “Such a large allocation of expenditure is bringing forth only notional gains, especially as there is a saturation in the demand for 4G services just as BSNL commences rolling out its 4G network.”