Why BSNL is getting funds from the Government?

Bharat Sanchar Nigam Limited (BSNL) recently received Rs 5,000 crore from the central government. This is the first payment made to the firm as part of its Rs 1.64 lakh crore revitalization plan. According to a report, the Rs 5,000 crore will assist  BSNL in making supplier payments. BSNL will now be able to repay supplier debts that have been outstanding for years. BSNL will pay suppliers like ITI Limited, Tejas Networks, VNL, HFCL, STL, and others. According to the new channel, BSNL would begin collecting suppliers’ debts within the next 15 days.

This would address some of the worries of suppliers who have failed to pay their dues for several years. The government would provide further financial assistance to  BSNL to support its 4G capital expenditure. The government had previously stated that it will pay BSNL in the form of feasibility gap assistance for providing connectivity in rural India. The government wants BSNL to become competitive again. That is why this aid package was revealed. BSNL required a boost to get back on course and deliver 4G network using in-house technology.

However, the introduction of the government telco’s 4G network is still one that Indians will have to wait for, purportedly due to equipment purchasing concerns. Ashwini Vaishnaw, India’s union telecom minister, had stated that BSNL staff would be required to work hard or be sent home. This is the ideal time for BSNL to adopt actions that will put it at odds with commercial carriers. However, the industry will suffer as a result of the 4G launch setbacks. We’re hoping to see something with respect to BSNL’s 4G network by the end of this year.