Government approves ₹ 1.64 Lakh crores revival package for BSNL, to merge with BBNL
In order to revive the ailing telecom company BSNL, The Government approved its merger with Bharat Broadband Network Ltd (BBNL) on Wednesday.
In a recent Tweet, Sh. Ashwini Vaishnaw, Union Telecom Minister, confirmed “Thankful to PM, as the cabinet approved ₹ 1.64 Lakh Crore support to BSNL towards our firm resolve of Antyodaya.”
Also, Sh. Amit Shah, Union Home Minister tweeted, In another important decision, the Union Cabinet chaired by PM, approved the revival package of BSNL amounting to ₹1.64 Lakh crores. This will help BSNL to improve the quality of their existing services, roll out 4G services and become financially viable.
As per the brief reports on the decision taken by the Government, the package includes:
- Administrative allotment of Spectrum to provide high-speed data.
- The merger of BSNL & BBNL to facilitate wider utilization of Infrastructure.
- Financial Support for Capex Fund to deploy Atmanirbhar 4G Stack.
- Viability gap funding to meet social objectives via rural wireline operations.
- Sovereign guarantees to raise long-term funding to repay current loans.
- Financial support for AGR dues to be settled by conversion into equity.
- Re-issue of preference shares.
- Increase in Authorised Capital.
Furthermore, the cabinet has decided to convert Rs 33,000 cr of statutory dues into equity.
In April 2022, The government announced a package that BBNL, the special purpose vehicle (SPV), formed to implement the ambitious BharatNet project will be merged with BSNL.
