Centre clears ₹1.64 trillion revival package for BSNL

Union government on Wednesday cleared a ₹1.64 trillion revival package for debt-ridden state owned telecom company Bharat Sanchar Nigam Ltd., Communications and Electronics and Information Technology minister Ashwini Vaishnaw said at a briefing.  

The government also approved a merger between Bharat Broadband Network Limited (BBNL) and BSNL.  

Vaishnaw said that the package has three elements. “The first element is to upgrade the services of BSNL. The second element is to de-stress the balance sheet of BSNL. The third element is to expand the fibre optics network of BSNL to meet the Prime Minister’s vision of bringing connectivity to every household,” said the minister. The minister said BSNL has been given whatever spectrum it has sought.  

The minister also said that BSNL will be able to expand its 4G services to more than 120,000 sites, an important source of revenue. Market stability and national security are important considerations in having a public sector entity in the telecom sector, the minister said explaining the rationale of the package. 

The government is expecting 100,000 jobs to be created due to this package, the minister said.