Cabinet approves revival of BSNL, approves Rs. 1.64 lakh crore revival package
HY News
28 July, 2022 02:08 pm IST
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The Union Minister of Railways, Communications, Electronics and Information Technology, said that the Union Cabinet approved the Rs. 1.64 lakh crore revival package for Bharat Sanchar Nigam Limited (BSNL).
Package announced by the government in 2019 has contributed to stabilising BSNL’s financial situation. The loss of clients has come to an end.
The cabinet has accepted a proposal to convert Rs 33,000 crore in statutory dues into equity as part of the de-stressing of the balance sheet, and an equal amount of bank loans will be repaid through the issuance of low-interest bonds.
A plan to combine BSNL and Bharat Broadband Network Limited (BBNL) was also approved by the cabinet.
Telecom minister Ashwini Vaishnaw said the package has a cash component of Rs 43,964 crore and a non-cash component of Rs 1.2 lakh crore spread over four years. “We are committed to strengthening BSNL,” he said. Funds will be provided to upgrade services, allocate spectrum, de-stress the balance sheet and augment the fiber network by merging Bharat Broadband Nigam Ltd (BBNL) with BSNL.
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