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Bharat Sanchar Nigam Ltd (BSNL), the debt-ridden telecom company has finally received clearance for a ₹1.64 trillion revival package and a scheme of ₹26,316 crores for extending 4G telecom services to nearly 25,000 villages.
BSNL will implement the scheme of extending 4G connectivity to villages. This scheme and package include conversion of spectrum dues to equity, support for CAPEX, restructuring the debt backed with a sovereign guarantee, and viability gap funding for rural wireline operations.
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Telecom minister, Ashwini Vaishnaw explained that the package has three elements. “The first element is to upgrade the services of BSNL. The second element is to de-stress the balance sheet of BSNL. The third element is to expand the fiber optics network of BSNL to meet the Prime Minister’s vision of bringing broadband connectivity to every household," said the minister.
“Telecom is a strategic sector. The presence of BSNL in the telecom market acts as a market balancer. BSNL plays a crucial role in expansion of telecom services in rural areas, development of indigenous technology and disaster relief," the company said in an official statement.
BSNL will get the spectrum in the 900/1800 MHz band administratively at the cost of ₹44,993 crores through equity infusion, ₹22,471 crores through Capex support over the next 4 years, and ₹13,789 crores through gap funding for the rural wire-line operation.
The authorized capital of the company will be raised from ₹40,000 crores to ₹1,50,000 crores in lieu of dues relating to adjusted gross revenue (AGR), CAPEX provision, and allotment of spectrum.
-by Gautam
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