iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

The Union Cabinet endorses a $1.64 trillion plan to revive BSNL

28 Jul 2022 , 08:37 AM

As part of a four-year recovery plan, the Union Cabinet on Wednesday approved a package of Rs1.64 trillion for Bharat Sanchar Nigam Ltd (BSNL). A combination of financial assistance, debt restructuring, viability-gap funding, and administrative spectrum allocation is included in the package. These measures could assist the state-owned telecom service provider in de-stressing its balance sheet, enhancing its landline network, and introducing 4G service.
According to Telecom Minister Ashwini Vaishnaw, “BSNL is anticipated to come around and make profit in FY2026-27 with the implementation of this rehabilitation plan.”

To strengthen BSNL’s infrastructure and support its telephony services, the Cabinet also authorized the merger of Bharat Broadband Network Limited (BBNL), a government-owned special purpose organization, with BSNL. In addition, an Rs26, 316 crore plan to serve over 30,000 villages with 4G mobile service utilizing a locally created 4G technology stack was approved.
After an Rs69,000 crore plan in 2019, which comprised equity injection, asset monetization, the merging of BSNL with MTNL, and a voluntary retirement program, this is the second revival package that the government has approved in three years.

Due to BSNL’s heavy losses (over Rs50,000 crore in the last five years) and outdated technology, revenues and client base have decreased. Vaishnaw defended the government’s action, saying it was deliberate and consistent with its goal of keeping a strong public sector unit in a vital area.

Related Tags

  • BSNL
  • business
  • economy
  • news
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.