Cabinet Approves Rs 1.64 Lakh Crore Package For BSNL, BBNL Merger Also Approved

According to the Union Minister, there are three goals of this package, firstly to improve the services of BSNL, secondly to improve its balance sheet, and thirdly to take the reach of BSNL through fiber far and wide.

Jul 27, 2022 - 22:29
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Cabinet Approves Rs 1.64 Lakh Crore Package For BSNL, BBNL Merger Also Approved
Cabinet Approves Rs 1.64 Lakh Crore Package For BSNL, BBNL Merger Also Approved

The cabinet today approved a package of Rs 1.64 lakh crore to improve the financial health of BSNL. Union Minister Ashwini Vaishnav gave this information today. According to the Union Minister, there are three goals of this package, firstly to improve the services of BSNL, secondly to improve its balance sheet, and thirdly to take the reach of BSNL through fiber far and wide. This amount will be used to achieve these three objectives. Along with this, the government will also help BSNL to repay bank loans through sovereign guarantee bonds. At present, there is a bank loan of 33 thousand crore rupees on the government telecom service provider. Along with this, the government has also approved an additional fund of Rs 26316 crore for the expansion of the 4G network in rural areas.

BBNL merger also approved
Along with this, the cabinet has also approved the merger of Bharat Broadband Network Limited with BSNL. BharatNet is the world's largest rural area broadband project under Bharat Broadband. It has got money from Universal Service Obligation Fund. Which was established for faster communication in rural areas. At the same time, the Union Minister informed that to clean the balance sheet, the debt of Rs 33 thousand crores will be converted into equity first. At the same time, the loan will be repaid to the banks by issuing low-interest bonds equal to the same amount. Along with this, the cabinet has also approved the administrative allocation of spectrum for 4G and 5G services to BSNL.

Government service provider's market share is very low
The main objective of today's move of the government is to bring the government companies to competition. The market share of government service providers BSNL and MTNL is only 10 percent. At the same time, the private sector Jarvis providers occupy a market share of about 90 percent. This is the reason why the government is trying to increase the capacity of BSNL through the package.

Also Read: Online Auction Of 5G Spectrum Started, First Round Completed, Companies Are Not Bidding Aggressively

Junja Choudhary He is an Editor in Chief, News Personality and Factchecker. 7 Years experience in Print and Digital Journalism.