Union Cabinet approves Rs 1.64 lakh crore revival package for BSNL

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Union Cabinet has approved revival package of over one lakh 64 thousand crore rupees for Bharat Sanchar Nigam Limited, BSNL. It has also approved the merger of Bharat Broadband Network Limited and BSNL. Briefing reporters in New Delhi after the Cabinet meeting in New Delhi today, Electronic and IT Minister Ashwini Vaishnaw said, the package is aimed at making BSNL a sustainable entity and vibrant telecom player. He said, with the help of this package the services of BSNL will be upgraded.

The Minister said, BSNL plays a crucial role in expansion of telecom services in rural areas, development of indigenous technology and disaster relief. He said, the revival measures focus on infusing fresh capital for upgrading BSNL services, allocating spectrum, de-stressing its balance sheet, and augmenting its fiber network by merging Bharat Broadband Nigam Limited with BSNL. He said, to improve existing services and provide 4G services, BSNL will be allotted Spectrum in 900 and 1800 Mega Hertz band administratively at the cost of 44 thousand 993 crore rupees through equity infusion.

The Minister said, government will provide sovereign guarantees to the two PSUs for raising long-term loans. They will be able to raise long-term bonds for an amount of 40 thousand 399 crore rupees. Mr Vaishnaw said, this will help restructure the existing debt and de-stressing the balance sheets.