Cabinet approves 1.64L-crore plan to revive BSNL

New Delhi: The Union Cabinet on Wednesday approved a 1.64 lakh crores revival package for the merger of Bharat Broadband Network Limited (BBNL) into the state-owned telecom operator Bharat Sanchar Nigam Limited (BSNL). The move by the government aims at not only improving the quality of BSNL services and de-stressing the balance sheet, but also to expand the fibre reach of the company.

The government is also approving sovereign guarantee bond issuance for the cash-crunched BSNL to repay its bank loans as the state-run telecom service provider is saddled with a hefty bank debt worth ~33,000 crores. However, the government wants to convert such huge statutory dues into equity to help improve BSNL’s financial health and to see a turnaround of the company by FY’27.

Briefing the media after the Cabinet meeting, telecom minister Ashwini Vaishnaw said, “The Union Cabinet today approved a Rs 1.64 lakh crores package for the revival of state-owned telecom firm BSNL where the package has a cash component of Rs 43,964 crores and a non-cash component of Rs 1.2 lakh crores spread over four years. The package has three elements — to improve services, de-stress the balance sheet and expansion of fibre network of the company.”