Union Cabinet approves Rs 1.64 Lakh Cr revival package for BSNL
- The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved a revival package for the state-owned telecom operator, Bharat Sanchar Nigam Limited (BSNL) worth Rs 1.64 Lakh Crore, to make BSNL financially viable.
- The revival package approved will focus on infusing fresh capital for:
- Upgrading BSNL services
- Administrative allotment of Spectrum
- Financial support for capex
- Viability gap funding for rural wireline operations
- Increase in authorized capital: The authorized capital of BSNL will be increased from current Rs 40,000 crore to Rs 1,50,000 crore
- De-stressing its balance sheet
- Debt structuring
- Financial support for AGR dues
- Re-issue of preference shares
- Augmenting its fiber network by merging Bharat Broadband Nigam Limited (BBNL) with BSNL
- The cabinet has cleared the merger of Bharat Broadband Network Limited (BBNL) with BSNL to facilitate wider utilization of infrastructure laid under BharatNet. BBNL is the special purpose vehicle (SPV) formed to implement the ambitious BharatNet project.
Source: Money Control