On Wednesday, the government had approved Rs 1.64 lakh crore revival package for BSNL, it was another effort to revive the state-owned telecom firm. Well, the package includes of changing dues into equity, funding and allocation of spectrum in a very bid to change the loss-making telecom PSU.

HIGHLIGHTS
The revival package for BSNL worth Rs 1.64 lakh crore got approved by government
BharatNet will merge with BSNL, boost infrastructure and support telephone services
In 2019, the package was worth Rs. 74,000 crore to provide great lifeline to BSNL

The package which comprises of cash component of Rs. 43,964 crore and a non-cash component of Rs. 1.2 lakh crore spread within four years. It would even include administrative allotment of 4G spectrum worth of Rs. 44,993 crore. Bharat Broadband Network Ltd (BBNL) is the firm that created a fibre network referred to as BharatNet. According to Telecom and IT Minister Ashwini Vaishnaw, it would be merged with BSNL in order to boost its infrastructure and support telephone services.

There are certain other key elements of the package such as capex support of Rs. 22,471 crore, viability gap funding of Rs. 13,789 crore especially for the rural wireline operations, debt structuring by raising of bonds with sovereign guarantee which would worth Rs. 40,399 crore and funding for AGR (Adjusted Gross Revenue ) whose dues worth Rs. 33,404 crore.

As per the Minister, “with these measures, BSNL would be able to improve the standard of existing services it would roll out 4G services and would become financially viable. Therefore, it would be expected that with the implementation of this revival set up, BSNL would take a turn and generate net profit within the next 3-4 years.'

He had mentioned in a conference that “the previous package of Rs. 74,000 crore in 2019 had provided a great lifeline to BSNL. As a result of which it had helped them to generate the operating profit (Rs 1,000 crore). So, in order to make it a viable company, we need to do the financial restructuring.” He added “Today’s decision would help to make BSNL sustainable.” As with a rapid losing market share to private rivals, the BSNL would have gone into deep sink if the government would have not provided the support to upgrade their technology and services in order to match the competition.

Also Read: BSNL 4G Services to be Rolled Out Soon, Says Minister of State for Communications