The Union Cabinet on Wednesday approved an amount of Rs. Telecom Minister Ashwini Vaishnav said that a package of 1.64 lakh crores for the revival of state-owned telecom company BSNL.
The package has three elements – improving services, de-stressing the balance sheet and expanding the fiber network.
Briefing reporters on the decision taken by the Union Cabinet, he said that the government will make administrative allocation of spectrum. BSNL 4G services needed
To ease the pressure on the balance sheet, Rs. 33,000 crore statutory dues will be converted into equity and the same amount of bank loan will be repaid by issuance of low interest bonds.
Also BBNL will be merged with BSNL.
The move is aimed at helping the loss-making firm compete better with private rivals.
The firm has struggled to win clients: Reliance telecommunication branch of industry live and rivals Bharti Airtel And Vodafone Idea Launched 4G services and aggressively cut data prices.
Meanwhile, firms run by tycoons Mukesh AmbaniSunil Bharti Mittal and Gautam Adani recently 1.45 lakh crore to buy fifth generation (5G) airwaves with a bid of around Rs. Private companies on Tuesday placed their bids on the opening day of India’s biggest ever spectrum auction.
According to Telecom Minister ashwini vaishnav, the response on the first day of the auction exceeded all expectations and will surpass the 2015 record when the revenue collection from the auction stood at Rs. 1.09 lakh crore.
Even the 700 MHz band, which saw no takers in the 2016 and 2021 auctions, also received bids this time around. As per the information provided by the Department of Telecommunications, in the prestigious 700 MHz band, Rs. Industry watchers said Rs 39,270 crore was received on the first day of the auction.