The Union Cabinet has approved the third revival package for Bharat Sanchar Nigam Limited (BSNL), a state-owned telecommunications company in India. The package has a total outlay of ₹89,047 crore and aims to support the financial recovery and modernization of BSNL. An official statement announced that the package includes the allotment of 4G and 5G spectrum to BSNL through equity infusion.
As part of the package, the authorized capital of BSNL will be increased from ₹1,50,000 crore to ₹2,10,000 crore. This increase in authorized capital will provide BSNL with greater financial flexibility and resources to undertake its operations and expansion plans.
The package involves the allotment of premium wireless frequencies in various bands. This includes frequencies in the 700 MHz band worth ₹46,338.6 crore, 70 MHz of frequencies in the 3300 MHz band worth ₹26,184.2 crore, frequencies in the 26 GHz band worth ₹6,564.93 crore, frequencies in the 2500 MHz band worth ₹9,428.2 crore, and ₹531.89 crore for miscellaneous items. These spectrum allocations will enable BSNL to roll out pan-India 4G and 5G services, extend 4G coverage to rural and uncovered villages, provide high-speed internet through Fixed Wireless Access (FWA) services, and offer services and spectrum for Captive Non-Public Network (CNPN).
The previous two revival packages for BSNL were implemented in 2019 and 2022, respectively. The first package, worth ₹69,000 crore, provided financial support for capital expenditure, viability gap funding for rural landlines, financial assistance to improve the balance sheet, settlement of Adjusted Gross Revenue (AGR) dues, and the merger of Bharat Broadband Network Limited (BBNL) with BSNL. The second package, worth ₹1.64 lakh crore, further supported BSNL’s revival efforts.
These earlier packages have already shown positive results in reducing BSNL’s total debt from ₹32,944 crore to ₹22,289 crore. The latest revival package, including the allotment of 4G and 5G spectrum, will further strengthen BSNL’s position and pave the way for its modernization and expansion in the telecommunications sector.
