Union Cabinet adopts a $1.6 billion BSNL revitalization plan

Shri Ashwini Vaishnaw, 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.

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KEY POINTS:

• Revenue that was declining has stabilised at Rs 19,000 crore thanks to a resuscitation package that the union cabinet authorised.
• The proposed package includes three components:

1. Better services,
2. A de-stressed balance sheet,
3. Fibre network development.

• 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 federal cabinet.
• Through this merger, BSNL would have access to 5.67 lakh kilometres of extra optical fibre that have been installed throughout 1.85 lakh village panchayats nationwide with the help of the country’s Universal Service Obligation Fund (USOF).
• BSNL now operates an optical fibre cable network that spans more than 6.83 lakh kilometres.

Important Takeaways For All Competitive Exams:

• Union Minister of Railways, Communications, Electronics and Information Technology: Shri Ashwini Vaishnaw

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