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| Photo Credit: Reuters
The Union Cabinet on June 7 approved the third revival package for BSNL with a total outlay of ₹89,047 crore.
The package includes allotment of 4G and 5G spectrum for BSNL through equity infusion, an official statement said.
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Also, the authorized capital of BSNL will be increased from ₹1,50,000 crore to ₹2,10,000 crore.
The package comprises allotment of premium wireless frequencies 700 MHz band spectrum worth ₹46,338.6 crore; 70 MHz of frequencies in 3300 MHz band worth ₹26,184.2 crore; frequencies in 26 GHz band worth ₹6,564.93 crore; in 2500 MHz band worth ₹9,428.2 crore and ₹531.89 crore for miscellaneous items.
The spectrum allocation will enable BSNL to roll out pan-India 4G and 5G services, 4G coverage in rural and uncovered villages under various connectivity projects, provide Fixed Wireless Access (FWA) services for high-speed internet and provide services/spectrum for Captive Non-Public Network (CNPN).
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The government had provided first revival package worth ₹69,000 crore for BSNL and MTNL in 2019. The second package worth ₹1.64 lakh crore was announced in 2022 .
It provided financial support for capex, viability gap funding for rural landlines, financial support for de-stressing the balance sheet, and settlement of AGR dues, merger of BBNL with BSNL, etc. As a result of these two packages, the total debt of BSNL has reduced from ₹32,944 crore to ₹22,289 crore.