Delhi: Cabinet Approves 3rd Revival Package of Rs. 89,047 Crore for 4G,5G Allocation for BSNL

NEW DELHI: The Centre has approved a complete package worth over Rs 89,047 crore for Bharat Sanchar Nigam Ltd (BSNL), as part of its recovery strategy. The government plans to revitalise BSNL through a number of steps, including the allocation of 4G/5G spectrum via equity injection. In addition, the permissible capital of BSNL would be enhanced from Rs 1.5 lakh crore to Rs 2.1 lakh crore.

The package includes the allocation of premium wireless frequencies in the 700 MHz band worth 46,338.6 crore, 70 MHz of frequencies in the 3300 MHz band worth 26,184.2 crore, frequencies in the 26 GHz band worth 6,564.93 crore, frequencies in the 2500 MHz band worth 9,428.2 crore, and 531.89 crore for miscellaneous items.

According to reports, the spectrum allocation will allow BSNL to roll out pan-India 4G and 5G services, 4G coverage in rural and unconnected villages through various connectivity projects, Fixed Wireless Access (FWA) services for high-speed internet, and services/spectrum for Captive Non-Public Network (CNPN).

This development comes after BSNL and Tata Consultancy Services (TCS) signed a collaboration agreement for the statewide deployment of a 4G network. BSNL's push for 4G is expected to put it in direct conflict with its counterparts, which are presently rolling out 5G services across India. The statement went on to say that the revival package will allow BSNL to establish itself as a dependable telecom service provider with a focus on connection in India's most distant places.

Previously, the government approved two BSNL/MTNL revival packages in 2019 and 2022, with investments totaling around Rs 69,000 crore and Rs 1.64 lakh crore, respectively. These packages offered financial support for capital investment, viability gap funding for rural landlines, balance sheet restructuring, AGR dues settlement, and the merging of BBNL with BSNL. As a result, BSNL has been profitable since FY2021-22, and its total debt has been reduced from Rs 32,944 crore to Rs 22,289 crore.

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