New Delhi: In a significant move, as part of the revival strategy, the Union Cabinet chaired by the Prime Minister, Narendra Modi, today approved the third revival package for BSNL with the total outlay of Rs. 89,047 crore.
It includes allotment of 4G/5G spectrum for BSNL through equity infusion.
The authorized capital of BSNL will be increased from Rs. 1,50,000 crore to Rs. 2,10,000 crore.
With this revival package, BSNL will emerge as a stable telecom service provider focused on providing connectivity to remotest parts of India.
Government had approved the first revival package for BSNL/MTNL in 2019. It amounted to Rs. 69,000 Crore and brought stability in BSNL/MTNL.
In 2022, Government approved second revival package for BSNL/MTNL amounting to Rs. 1.64 Lakh Crore. 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, merger of BBNL with BSNL, etc.
As a result of these two packages, BSNL has started earning operating profits since FY 2021-22. Total debt of BSNL has reduced from Rs. 32,944 Crore to Rs. 22,289 Crore