As part of the revival strategy of the state-run BSNL, the Union cabinet on Wednesday approved a third revival package for the telecom unit.
The package has a total outlay of Rs 89,047 crore which includes allotment of 4G/5G spectrum for BSNL through equity infusion.
The authorized capital of BSNL will now 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 remotest parts of India, officials said.
With this spectrum allotment, BSNL will be able to provide pan India 4G and 5G services, provide 4G coverage in rural and uncovered villages under various connectivity projects and high speed internet.
The government had approved the first revival package for BSNL/MTNL in 2019. It amounted to Rs 69,000 crore and brought stability in these telecom companies. In 2022, the government approved second revival package for BSNL/MTNL amounting to Rs 1.64 lakh crore.
It also provided financial support for capex, viability gap funding for rural landlines, financial support for de-stressing the balance sheet, settlement of AGR dues, and merger of BBNL with BSNL.
The government said as a result of these two packages, BSNL has started earning operating profits since FY 2021-22. Total debt of BSNL has reduced from Rs 32,944 crore to Rs 22,289 crore.
On a brighter side, the BSNL has achieved strong growth in home fiber segment. It is providing more than 1 lakh new connections every month. Total home fiber subscriber base of BSNL in May 2023 is 30.88 lakh. Total revenue from home fiber last year was Rs 2,071 crore.