Categories: Business

Centre approves 3rd revival package for BSNL worth Rs 89,047 crores

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.

Aim

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.

About BSNL

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

Find More Business News Here

saurabh

Recent Posts

India’s Industrial Output Growth Hits Five-Month High of 5.1% in May

India’s industrial output growth rose to a five-month high of 5.1 per cent in May,…

3 hours ago

India’s External Debt Climbs to $762.8 Billion in FY26: RBI Explains the Rise

At the end of FY26, India's external debt rose to $762.8 billion and it marks…

3 hours ago

Government Establishes Bureau of Port Security to Strengthen Maritime and Cyber Security

The Government of India has established the Bureau of Port Security (BoPS) under the Ministry…

4 hours ago

Team India Wins 5 Medals at Global Skills Challenge Australia 2026, Strengthening WorldSkills Shanghai Preparations

India have secured five medals at the Global Skills Challenge (GSC) Australia 2026, as India…

4 hours ago

Rajasthan and Haryana Sign Historic Yamuna Water Project Agreement: Key Features, Benefits and Significance Explained

The State Governments of Rajasthan and Haryana signed an agreement for the construction and implementation…

4 hours ago

Ayushman Sarathi WhatsApp Chatbot Launched: A New Digital Gateway to PM-JAY Servicesa

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) has become easier after the launch…

5 hours ago