Cabinet Approves Rs 1.64 Lakh Crore Revival Package For BSNL: Minister

Cabinet Approves Rs 1.64 Lakh Crore Revival Package for BSNL: Minister

Cabinet nod for Rs 1.64 lakh crore BSNL revival package: Telecom minister

India’s telecoms minister on Wednesday announced a $20.5 billion package to revive state-run telecom provider Bharat Sanchar Nigam (BSNL), in a bid to help the loss-making company better compete with privately owned rivals. .

Here’s your 10-point guide to the story:

  1. The Union cabinet on Wednesday approved a package of Rs 1.64 lakh crore for the revival of the state-owned company BSNL, Telecom Minister Ashwini Vaishnaw said.

  2. The recovery measures approved by the cabinet focus on new capital to upgrade services, allocate spectrum, relieve the burden on the balance sheet and increase the fiber network by merging Bharat Broadband Nigam Ltd (BBNL) with BSNL.

  3. He informed reporters about the decision of the Union cabinet and said the package has a cash component of Rs 43,964 crore and a non-cash component of Rs 1.2 lakh crore, spread over four years.

  4. The cabinet makes administrative allocation of spectrum that BSNL needs to offer 4G services. The spectrum allocation in the 900/1800 MHz band at the cost of Rs 44,993 crore would be through equity injection.

  5. He said that in order to meet the expected capital expenditures for the next four years, the government will fund Capex with Rs 22,471 crore for the development of a 4G technology stack.

  6. Also, the government will provide Rs 13,789 crore to BSNL as viability gap funding for commercially unviable rural telephone line operations conducted during 2014-15 to 2019-20 period.

  7. Rs 33,404 crore statutory dues will be converted into equity to relieve the balance sheet. In addition, the government will provide a sovereign guarantee for raising money to repay outstanding loans.

  8. To allow wider use of the infrastructure under BharatNet, BBNL will be merged with BSNL, he said.

  9. The infrastructure created under BharatNet will remain nationally owned and accessible to all telecom service providers on a non-discriminatory basis.

  10. The minister said the Union cabinet also approved a project for saturation of 4G mobile services in uncovered villages across the country for a total cost of Rs 26,316 crore. He added that the project would provide 4G mobile services in 24,680 unhidden villages in remote and difficult areas.

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