Centre Approves Rs 89,047 Cr Revival Package for BSNL; 4G & 5G Spectrum Alloted

New Delhi: The Union Cabinet has recently granted its approval for the third revival package for BSNL, allocating a substantial amount of Rs 89,047 crore. This comprehensive package entails the provision of 4G and 5G spectrum for BSNL through equity infusion, a move outlined in an official statement. Furthermore, the authorized capital of BSNL will witness an increase from Rs 1,50,000 crore to Rs 2,10,000 crore.

The revival package encompasses the allocation of valuable wireless frequencies in multiple bands. This includes the highly sought-after 700 MHz band spectrum, with an estimated value of Rs 46,338.6 crore. Additionally, BSNL will be granted 70 MHz of frequencies in the 3300 MHz band, worth approximately Rs 26,184.2 crore, along with frequencies in the 26 GHz and 2500 MHz bands, valued at Rs 6,564.93 crore and Rs 9,428.2 crore, respectively. Moreover, an allocation of Rs 531.89 crore has been set aside for miscellaneous items.

The allocation of spectrum is expected to empower BSNL in launching nationwide 4G and 5G services. It will facilitate the expansion of 4G coverage in rural and underserved areas as part of various connectivity projects. Additionally, BSNL will be able to provide Fixed Wireless Access (FWA) services, delivering high-speed internet, and extend services/spectrum for Captive Non-Public Network (CNPN).

Notably, this marks the third revival package for BSNL, following the government’s initial support of Rs 69,000 crore in 2019 and a subsequent package worth Rs 1.64 lakh crore announced in 2022. The earlier packages encompassed financial assistance for capital expenditure, viability gap funding for rural landlines, support for the company’s balance sheet, settlement of Adjusted Gross Revenue (AGR) dues, and the merger of BBNL with BSNL. Consequently, BSNL’s total debt has reduced significantly from Rs 32,944 crore to Rs 22,289 crore owing to the implementation of these two packages.