Why government wants to keep BSNL alive
Union Cabinet has approved the third revival package for BSNL with the total outlay of Rs. 89,047 crore. With this revival package the authorized capital of BSNL will increase from Rs. 1,50,000 crore to Rs. 2,10,000 crore. BSNL connects the most remote parts of India and powers many government-run facilities. If private companies flounder, BSNL is the only alternative for the government.Also BSNL plays a vital role in advancing the government’s rural broadband agenda. Centre approves 3rd revival package for BSNL worth Rs 89,047 crores.
The aim of this revival package is to help emerge BSNL as a stable telecom service provider focused on providing connectivity to remotest parts of India.The package will be utilised for enhancing BSNL’s 4G and 5G services.
Previous revival package
- Government had approved the first revival package for BSNL/MTNL in 2019 which amounted to Rs. 69,000 Crore and brought stability in BSNL/MTNL.
- Mahanagar Telephone Nigam Limited (MTNL) is a wholly owned subsidiary of Bharat Sanchar Nigam Limited.
- In 2022, Government approved second revival package for BSNL/MTNL amounting to Rupees 1.64 Lakh Crore. It provided financial support for capex(capital expenditure), viability gap funding for rural landlines, financial support for de-stressing the balance sheet, merger of BBNL(Bharat Broadband Network Limited) with BSNL, etc.
- As a result of these two packages, BSNL has started earning operating profits since FY 2021-22. Total debt of BSNL has reduced from Rs. 32,944 Crore to Rs. 22,289 Crore.
BSNL was established in 2000 and is one of the largest telecommunications service providers in India. It offers a wide range of services including landline, mobile, broadband and enterprise solutions.
Key financials of BSNL are as follows:
|Financial Year||FY 2020-21||FY 2021-22||FY 2022-23|
|Revenue||18,595 Cr||19,053 Cr||20,699 Cr|
|Operating profit||1,177 Cr||944 Cr||1,559 Cr|