BSNL gets ₹1.64 lakh crore lifeline from government

India’s Telecom minister on July 27 announced a ₹1.64 lakh crore to revive state-run telecom provider Bharat Sanchar Nigam (BSNL). | Photo Credit: Kesavan A.N.
In yet another effort to turnaround the state-owned telecom firm Bharat Sanchar Nigam Limited (BSNL), the Union Cabinet on July 27 approved a ₹1.64 lakh crore package for its revival.

The package, which has a cash component of ₹43,964 crore and a non-cash component of ₹1.2 lakh crore spread over four years, will include administrative allotment of 4G spectrum worth ₹44,993 crore. In addition, Bharat Broadband Network Ltd (BBNL) that was set up to implement the ambitious BharatNet project, will be merged with BSNL.

Other key components of the package include capex support of ₹22,471 crore, viability gap funding of ₹13,789 crore for rural wireline operations, debt structuring by raising of bonds with sovereign guarantee worth ₹40,399 crore and financial support for AGR (Adjusted Gross Revenue ) dues worth ₹33,404 crore.