The amount is part of the Rs 1.64-lakh-crore package announced last year for the revival of BSNL
The Cabinet Committee on Economic Affairs (CCEA) has approved a revival package of Rs 89,047 crore for state-owned BSNL, according to a CNBC-TV18 report quoting people with knowledge of the matter. The amount is part of the Rs 1.64-lakh-crore package announced last year for the revival of Bharat Sanchar Nigam Ltd (BSNL).
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The government had announced a capital infusion of Rs 52,937 crore for the current financial year 2023-24, which was higher than the Rs 44,720 crore earmarked last year.
Announcing the Rs 1.64-lakh-crore last year, Telecom Minister Ashwini Vaishnaw had said the package will be given in a staggered manner, spreading over four years. However, 70 per cent of the support will be extended within 1-2 years. The telecom minister had also said the result will be visible within the next two years.
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Apart from the cash support, the government last year also said the administrative allocation of spectrum for 4G and 5G services for BSNL was given the go-ahead, along with approving its infrastructure expansion and upgrade.
Bharat Sanchar Nigam Limited (BSNL) had constantly been making losses. BSNL’s losses in 2019-20 had stood at Rs 15,500 crore, which halved to Rs 7,441 crore in 2020-21 after a revival package in 2019.
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In 2019, the government had proposed a plan to merge Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Limited (MTNL), to revive both the state-owned companies that were reeling under losses. The government also aimed a Rs 38,000-crore asset monetisation programme, issuance of Rs 15,000 crore sovereign bonds and implementing a voluntary retirement scheme (VRS) for employees of BSNL and MTNL.
