The Union Cabinet on Wednesday approved a third revival package for Bharat Sanchar Nigam Limited (BSNL), granting Rs 89,047 crore to the state-run telecom firm.
BSNL’s authorised capital will be increased from Rs 1,50,000 crore to Rs. 2,10,000 crore. The Cabinet also approved allotting 4G/5G spectrum for the company through equity infusion.
The move will help BSNL in providing nationwide 4G and 5G services, especially in rural areas, under various connectivity projects, said the Ministry of Communications.
BSNL will also be able to provide fixed wireless access (FWA) services for high-speed internet and services for Captive Non-Public Network (CNPN).
The government first announced a Rs 69,000-crore revival package for BSNL and MTNL in October 2019. Last year, it approved a second revival package for BSNL/MTNL amounting to Rs. 1.64 trillion.
It provided BSNL financial support for capital expenditure, viability gap funding for rural landlines, financial support for de-stressing the balance sheet, and settlement of adjusted gross revenue dues, and merger of Bharat Broadband Network Limited with BSNL.
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BSNL, as a result of government packages, has started earning operating profits since FY 2021-22. Its total debt has reduced from Rs 32,944 crore to Rs 22,289 crore.
BSNL's 4G plan
Telecom minister Ashwini Vaishnaw has said earlier that BSNL will launch 5G services by November or December 2023. BSNL is working to launch 4G service in the next few weeks. As part of the pilot for 4G, it has deployed 200 sites in three districts of Punjab.
A consortium led by IT giant Tata Consultancy Services (TCS) received last month an advance purchase order worth Rs 15,000 crore from BSNL in a widely speculated 4G network deployment deal.
The consortium, which includes Tejas Networks Ltd, Centre for Development of Telematics (C-DOT) and the central government’s public sector undertaking ITI Ltd (earlier known as Indian Telephone Industries Limited), won the bid for BSNL’s pan-India 4G project. According to sources, around 75 per cent of the deal value will go to TCS.
BSNL's plans to launch 4G services years after three private telecom service providers—Reliance Jio, Bharti Airtel and Vodafone Idea—rolled it out, rests on new sites going live quickly. Vaishnaw has said the company will install 200 new sites every day going forward.
But the plans have seen repeated delays.
Sources in the know told 'Business Standard' earlier the BSNL board and later a Group of Ministers had approved funds for a total deal size of Rs. 24,500 crore. The amount will supply 4G equipment for 100,000 sites, network gear for about Rs 13,000 crore, as well as third-party items and a 10-year annual maintenance contract (AMC).
