Government delivers the first instalment of Rs 5,000 billion to BSNL as part of the rehabilitation package

The Centre has given the government Bharat Sanchar Nigam Limited (BSNL) the very first instalment of Rs 5,000 crores from the newly launched Rs 1.64 lakh crore revitalization plan, which would be used to pay off the telco’s debts to its suppliers.

According to the media outlet, the suppliers have been experiencing financial problems as a result of outstanding debt for the past two years.

Tower operators are anticipated to gain from the first phase in addition to local gear suppliers.

The largest supplier for BSNL, in addition to Tejas Networks, HFCL, VNL, STL, and others, is ITI Limited (ITI).

According to the report, BSNL should begin paying off its outstanding debts within the upcoming 15 days.

The Rs 1.64 lakh crore revitalization package for the struggling telecom PSU, which comprises cash assistance of Rs 43,964 crore and non-cash assistance of Rs 1.20 lakh crore, was agreed upon by the Union Cabinet in late July. The revival programme will last for four years, but the first two years will see the bulk of its implementation. The cash leader will be used for spectrum usage, capital expenditures, and suitability gap funding.

According to a formal announcement, the government anticipates that after implementing this restoration strategy, BSNL would become a financially viable division and reach profitability in FY 2026–2027.

In accordance with the rehabilitation package, BSNL will be given operational spectrum allocation in the 900/1800 MHz band at a cost of Rs 44,993 crore via equity injection. As a result, BSNL will be capable of offering 4G services.

Implementing the Atmanirbhar 4G technology stack is currently being done by BSNL. The government would provide funding for capex of Rs 22,471 crore to cover the anticipated capital expenditures over the next four years.

The government had already approved the union of BSNL and Bharat Broadband Network Limited (BBNL), the organisation in charge of carrying out BharatNet.