Centre lays Rs 1.64L cr BSNL revival plan, to pump Rs 26316 cr on rural digital connectivity
The move is seen as a part of Centre’s broader digital inclusion plan after the Union cabinet cleared another supplementary Rs 26,316 crore for 4G connectivity in remote villages
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Breaking the silos to fetch the rural digital connectivity quest, the Union cabinet led by Prime Minister Narendra Modi in a much surprising move cleared a mega Rs 1.64 lakh crore revival package for ailing public sector telecom operator Bharat Sanchar Nigam Limited (BSNL) on Wednesday. The Union cabinet has also approved the merger of Bharat Broadband Nigam Limited (BBNL) with BSNL.
The move is seen as a part of Centre’s broader digital inclusion plan after the Union cabinet cleared another supplementary Rs 26,316 crore package to provide 4G mobile services in uncovered villages across the country. Interestingly the project that looks to fast track 4G mobile services in about 24,680 uncovered villages in remote areas will be executed by BSNL. The project also looks to upgrade 2G/3G connectivity with 4G in an additional 6,279 villages.
“Connectivity brings opportunities, progress and prosperity. Today’s Cabinet decision on enhancing connectivity in uncovered villages is going to transform lives of people in these areas and ensure better service delivery as well,” PM Modi said in a tweet.
According to the Union ministry of communications, Ashwini Vaishnaw, BSNL is already in process of deployment of Atmanirbhar 4G technology stack. The 4G connectivity project in uncovered villages is seen as one of key government initiatives for smooth delivery of e-governance services, banking services, tele-medicine and tele-education, which can be accessed through mobile broadband and may generate new employment opportunities in rural areas.
Meanwhile, addressing a media briefing after the cabinet meeting Union minister of Railways, Communications, Electronics and Information Technology, Ashwini Vaishnaw said the BSNL ‘revival’ package is a “combination of cash support and non-cash support.”
According to the Union minister, as part of Rs 1.64 lakh crore revival package, BSNL will be allotted spectrum in 900/1800 MHz band administratively at the cost of Rs 44,993 crore through equity infusion. Further 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, Centre will fund a capex of Rs 22,471 crore. The new BSNL revival plan eyes a turn-around and profitability in FY 2026-27.
Further, the Union government will provide Rs 13,789 crore to BSNL as viability gap funding for commercially unviable rural wire-line operations done during 2014-15 to 2019-20 and increase the authorized capital of BSNL from Rs 40,000 crore to Rs 1,50,000 crore in lieu of AGR dues, provision of capex and allotment of spectrum.
“In another important decision, the Union Cabinet chaired by PM Shri @narendramodi Ji approved the revival package of BSNL amounting to ₹1.64 Lakh crores. This will help BSNL to improve the quality of their existing services, roll out 4G services and become financially viable,” Union home minister Amit Shah tweeted.
As per Union communications minister Vaishnaw said, “the attrition of BSNL customers has stopped. Revenue which was going down has become stable at Rs 19,000 crore.” The minister said the move to merge BBNL with BSNL will facilitate the wider utilisation of infrastructure laid under BharatNet.
The infrastructure created under BharatNet will however, continue to be a national asset and accessible on a non-discriminatory basis to all the Telecom Service Providers, according to an official statement released after the cabinet meeting.
With the BBNL merger, BSNL is likely to get an additional 5.67 lakh kilometres of optical fibre which has been laid across 1.85 lakh village panchayats in the country using the Universal Service Obligation Fund (USOF). Currently, BSNL has an optical fibre cable network of over 6.83 lakh kilometres.
The Union minister said the revival package has three elements -- to improve services, de-stress the balance sheet and expansion of fibre network. To de-stress BSNL balance sheet Centre will provide sovereign guarantee to these PSUs for raising long term loans. They will be able to raise long term bonds for an amount of Rs 40,399 crore. This will help restructuring existing debt and de-stressing the balance sheets.
Besides a financial support for AGR dues of BSNL amounting to Rs 33,404 crore will be settled by conversion into equity. Government will provide funds to BSNL for settling the AGR/GST dues. BSNL will also re-issue preference shares of Rs 7,500 crore to the government.
The move is seen as a part of Centre’s broader digital inclusion plan after the Union cabinet cleared another supplementary Rs 26,316 crore package to provide 4G mobile services in uncovered villages across the country. Interestingly the project that looks to fast track 4G mobile services in about 24,680 uncovered villages in remote areas will be executed by BSNL. The project also looks to upgrade 2G/3G connectivity with 4G in an additional 6,279 villages.
“Connectivity brings opportunities, progress and prosperity. Today’s Cabinet decision on enhancing connectivity in uncovered villages is going to transform lives of people in these areas and ensure better service delivery as well,” PM Modi said in a tweet.
Connectivity brings opportunities, progress and prosperity. Today’s Cabinet decision on enhancing connectivity in u… https://t.co/dAGZ2RH7xk
— Narendra Modi (@narendramodi) 1658944083000According to the Union ministry of communications, Ashwini Vaishnaw, BSNL is already in process of deployment of Atmanirbhar 4G technology stack. The 4G connectivity project in uncovered villages is seen as one of key government initiatives for smooth delivery of e-governance services, banking services, tele-medicine and tele-education, which can be accessed through mobile broadband and may generate new employment opportunities in rural areas.
Meanwhile, addressing a media briefing after the cabinet meeting Union minister of Railways, Communications, Electronics and Information Technology, Ashwini Vaishnaw said the BSNL ‘revival’ package is a “combination of cash support and non-cash support.”
According to the Union minister, as part of Rs 1.64 lakh crore revival package, BSNL will be allotted spectrum in 900/1800 MHz band administratively at the cost of Rs 44,993 crore through equity infusion. Further 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, Centre will fund a capex of Rs 22,471 crore. The new BSNL revival plan eyes a turn-around and profitability in FY 2026-27.
Further, the Union government will provide Rs 13,789 crore to BSNL as viability gap funding for commercially unviable rural wire-line operations done during 2014-15 to 2019-20 and increase the authorized capital of BSNL from Rs 40,000 crore to Rs 1,50,000 crore in lieu of AGR dues, provision of capex and allotment of spectrum.
“In another important decision, the Union Cabinet chaired by PM Shri @narendramodi Ji approved the revival package of BSNL amounting to ₹1.64 Lakh crores. This will help BSNL to improve the quality of their existing services, roll out 4G services and become financially viable,” Union home minister Amit Shah tweeted.
In another important decision, the Union Cabinet chaired by PM Shri @narendramodi Ji approved the revival package o… https://t.co/WsnxoyiJSP
— Amit Shah (@AmitShah) 1658929625000As per Union communications minister Vaishnaw said, “the attrition of BSNL customers has stopped. Revenue which was going down has become stable at Rs 19,000 crore.” The minister said the move to merge BBNL with BSNL will facilitate the wider utilisation of infrastructure laid under BharatNet.
The infrastructure created under BharatNet will however, continue to be a national asset and accessible on a non-discriminatory basis to all the Telecom Service Providers, according to an official statement released after the cabinet meeting.
With the BBNL merger, BSNL is likely to get an additional 5.67 lakh kilometres of optical fibre which has been laid across 1.85 lakh village panchayats in the country using the Universal Service Obligation Fund (USOF). Currently, BSNL has an optical fibre cable network of over 6.83 lakh kilometres.
The Union minister said the revival package has three elements -- to improve services, de-stress the balance sheet and expansion of fibre network. To de-stress BSNL balance sheet Centre will provide sovereign guarantee to these PSUs for raising long term loans. They will be able to raise long term bonds for an amount of Rs 40,399 crore. This will help restructuring existing debt and de-stressing the balance sheets.
Besides a financial support for AGR dues of BSNL amounting to Rs 33,404 crore will be settled by conversion into equity. Government will provide funds to BSNL for settling the AGR/GST dues. BSNL will also re-issue preference shares of Rs 7,500 crore to the government.
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