New Delhi: The Cabinet has approved a revival package worth Rs 1.64 lakh crore to revive the state-run Bharat Sanchar Nigam Limited (BSNL). The grant comes in to help the loss-making firm sustain in the market.
India’s Telecom Minister Ashwini Vaishnaw has announced a revival package worth $20.5 billion. This has come to reinstate the ability of BSNL to compete in the market.
The Cabinet has also approved the merger of BSNL and bharat Broadband Network Limited said Ashwini Vaishnaw. The package has three key elements
- to improve services
- de-stress balance sheet
- expansion of fiber network
BSNL has been struggling ever since Indian telecom giants rolled out aggressive price cuts on availing 4G data. This game began with the coming in of Reliance Industries’ Jio, Bharti Airtel and Vodafone Idea.
To ease the stress on the balance sheets, Rs 33,000 crore statutory dues will be converted into equity. A similar amount of bank loans will be repaid through the issue of low-interest bonds.
