New Delhi: In a significant move, as part of the revival strategy, the Union Cabinet chaired by Prime Minister Narendra Modi on June 7 approved the third revival package for BSNL with a total outlay of Rs 89,047 crore that includes the allotment of 4G/5G spectrum for BSNL through equity infusion.

The authorised capital of BSNL will be increased from Rs 1,50,000 crore to Rs 2,10,000 crore.

With this revival package, BSNL will emerge as a stable telecom service provider focused on providing connectivity to the remotest parts of India.

The spectrum allotment in BSNL will be able to provide pan-India 4G and 5G services, provide 4G coverage in rural and uncovered villages under various connectivity projects, provide Fixed Wireless Access (FWA) services for high-speed internet, provide services/spectrum for Captive Non-Public Network.

The Centre approved the first revival package for BSNL/MTNL in 2019 amounting to Rs 69,000 crore and brought stability to BSNL/MTNL.

In 2022, the government approved the second revival package for BSNL/MTNL amounting to Rs 1.64 lakh crore. It provided financial support for capex, viability gap funding for rural landlines, financial support for destressing the balance sheet and settlement of AGR dues, merger of BBNL with BSNL, etc.

As a result of these two packages, BSNL has started earning operating profits since FY 2021-22. The total debt of BSNL has reduced from Rs 32,944 crore to Rs 22,289 crore.

In FY 2020-21, the revenue was Rs 18,595 crore; in FY 2021-22, the revenue was Rs 19,053 crore; and in FY2022-23, the revenue reported by BSNL was Rs 20,699 crore.

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