Union Cabinet approves Rs. 1.64 trillion package to revive BSNL

New Delhi, Jul 27: The Union Cabinet on Wednesday approved a Rs 1.64-trillion package for the revival of state-owned telecom firm BSNL, Telecom Minister Ashwini Vaishnav said.

 

 

 

The package has three elements -- to improve services, de-stress the balance sheet, and expand the fiber network.

 

 

 

Briefing reporters on the decision taken by the Union Cabinet, he said the government will make administrative allocation of spectrum BSNL needs to offer 4G services. To de-stress the balance sheet, Rs 33,000 crore statutory dues will be converted into equity and a similar amount of bank loans will be repaid through the issue of low-interest bonds.

Also, Bharat Broadband Network Ltd will be merged with BSNL, he added. BharatNet under BBNL is among the world’s biggest rural broadband projects. This is funded by Universal Service Obligation Fund (USOF), which was initially meant to cater to village telephony handled primarily by BSNL.

 

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BSNL offers telecom services (both landline and wireless) across India except in Mumbai and Delhi – the two cities where MTNL is the state-owned telco.