Why government wants to keep BSNL alive
The Union Cabinet has approved the third BSNL revival package, totaling Rs. 89,047 crore. The authorised capital of BSNL will be increased from Rs. 1,50,000 crore to Rs. 2,10,000 crore as part of this revival package. 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 goal of this revival package is to assist BSNL emerge as a solid telecom service provider focused on delivering connection to India's most distant areas. 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.
• Bharat Sanchar Nigam Limited entirely owns Mahanagar Telephone Nigam Limited (MTNL).
• 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 |
