Second revival package shows govt’s projections on BSNL were wrong

When the government provided a Rs 74,000-crore bailout package to BSNL in October 2019, the company had posted a net loss of Rs 13,804 crore (FY19). The Centre had then provided a blueprint for the ailing PSU’s revival with the package provided by it. The projection was that the company’s losses would widen in FY20 — it posted a massive loss of Rs 15,499 crore during the fiscal — but thereon start narrowing and come down to around Rs 5,432 crore in FY21. It would then post a net loss of Rs 396 crore in FY23 and break into a profit of Rs 2,235 crore in FY24.

On Wednesday, announcing a second and bigger revival package of Rs 1.64 trillion for the state-owned telco, telecom minister Ashwani Vaishnaw said it is expected that with the implementation of this revival plan, BSNL will turn around and earn profit in FY26-27.