The revival is focused on new capital for upgradation of services, spectrum allocation, bridging its balance sheet and enhancing its fiber network by merging Bharat Broadband Nigam Limited with BSNL.
The revival is focused on new capital for upgradation of services, spectrum allocation, bridging its balance sheet and enhancing its fiber network by merging Bharat Broadband Nigam Limited with BSNL.
The Union Cabinet on July 27 approved a Rs 1.64 lakh crore package for the revival of state-owned telecom company BSNL, Telecom Minister Ashwini Vaishnav said.
Bharat Broadband Nigam Limited (BBNL) has been merged with BSNL to focus on the revival measures approved by the cabinet to upgrade services, spectrum allocation, reduce its balance sheet and enhance its fiber network.
Briefing reporters on the decision taken by the Union Cabinet, he said that the package has a cash component of Rs 43,964 crore and a non-cash component of Rs 1.2 lakh crore over four years.
Government will make administrative allocation of spectrum BSNL needs to offer 4G services. The allocation of spectrum in the 900/1800 MHz band at a cost of Rs 44,993 crore will be done through equity investment.
To meet the projected capital expenditure for the next four years, the government will incur a capital expenditure of Rs 22,471 crore to develop the 4G technology stack, he said.
Also, the government will provide Rs 13,789 crore to BSNL as viability-gap funding for commercially unviable rural wireline operations undertaken during 2014-15 to 2019-20.
The statutory dues of Rs 33,404 crore will be converted into equity to ease the pressure on the balance sheet.
In addition, the government will provide sovereign guarantee to raise funds to repay existing loans, he said.
He said that BBNL would be merged with BSNL to facilitate wider use of the infrastructure set up under BharatNet.
The infrastructure created under BharatNet will continue to be a national asset, accessible to all telecom service providers on a non-discriminatory basis.
The Minister said that the Union Cabinet has also approved a project for saturation of 4G mobile services in untouched villages across the country at a total cost of Rs 26,316 crore.
He said that this project will provide 4G mobile services in 24,680 villages in remote and inaccessible areas.