Telecom Minister introduced a ₹ 1.64 lakh crore bundle to restore kingdom-run Bharat Sanchar Nigam (BSNL), to help the loss-making company compete.
India’s Telecom minister on Wednesday introduced a $20.Five billion package deal to restore country-run telecom company Bharat Sanchar Nigam (BSNL), in a move to help the loss-making firm compete better with personal rivals.
Here Is Your 10-Point Guide To The Story:
- The Union Cabinet on Wednesday approved a ₹ 1.64 lakh crore package for the revival of state-owned telecom firm BSNL, Telecom Minister Ashwini Vaishnaw said.
- The revival measures approved by the Cabinet focus on fresh capital for upgrading services, allocating spectrum, de-stressing its balance sheet and augmenting its fibre network by merging Bharat Broadband Nigam Ltd (BBNL) with BSNL.
- Briefing reporters on the decision taken by the Union Cabinet, he said the package has a cash component of ₹ 43,964 crore and a non-cash component of ₹ 1.2 lakh crore spread over four years.
- The government will make administrative allocation of spectrum BSNL needs to offer 4G services. The spectrum allocation in the 900/1800 MHz band at the cost of ₹ 44,993 crore would be through equity infusion.
- He said to meet the projected capital expenditure for the next four years, the government will fund Capex with ₹ 22,471 crore for developing a 4G technology stack.
- Also, the government will provide ₹ 13,789 crore to BSNL as viability-gap funding for commercially unviable rural wireline operations done during 2014-15 to 2019-20.
- Rs 33,404 crore statutory dues will be converted into equity to de-stress the balance sheet. Besides, the government will provide a sovereign guarantee for raising money to repay current loans.
- To facilitate wider utilization of infrastructure laid under BharatNet, BBNL will be merged with BSNL, he said.
- The infrastructure created under BharatNet will continue to be a national asset, accessible on a non-discriminatory basis to all the Telecom Service Providers.
- The Minister said the Union Cabinet also approved a project for saturation of 4G mobile services in uncovered villages across the country at a total cost of ₹ 26,316 crore. He added that the project would provide 4G mobile services in 24,680 uncovered villages in remote and difficult areas.