Union Cabinet Approves Third Revival Package For BSNL

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the third revival package for BSNL with a total outlay of Rs 89,047 crore, including the allotment of 4G/5G spectrum through equity infusion.

The authorised capital of BSNL will increase from Rs 1,50,000 crore to Rs 2,10,000 crore. The government previously approved the first revival package in 2019, amounting to Rs 69,000 crore, which brought stability to BSNL/MTNL.

In 2022, the government approved the second revival package worth Rs 1.64 lakh crore, providing financial support for capex, viability gap funding, balance sheet de-stressing, settlement of AGR dues, and the merger of BBNL with BSNL.

As a result, BSNL has achieved operating profits since FY 2021-22, reduced its total debt from Rs 32,944 crore to Rs 22,289 crore, and experienced strong growth in the home fiber segment, with over 1 lakh new connections provided monthly. As of May 2023, BSNL's home fiber subscriber base reached 30.88 lakh, and the total revenue from home fiber last year was Rs 2,071 crore.