Centre to infuse ₹44,720 cr into BSNL in FY23
- IBEF
- February 2, 2022
According to Budget documents, the Centre will invest Rs 44,720 crores (US$ 5.98 billion) in Bharat Sanchar Nigam Limited (BSNL), a loss-making state-owned telecom provider, in the coming fiscal. The document's explanatory note stated, “The provision is made for capital infusion for 4G spectrum, technology up-gradation and restructuring in BSNL.”
Apart from the capital injection, the Centre will provide the telecommunications business with additional financial support of Rs 7,443.57 crore (US$ 995.8 million) for a voluntary retirement scheme and Rs 3,550 crore (US$ 474.9 million) as grant-in-aid for GST payment.
The financial support for the voluntary retirement plan (VRS) comprises both BSNL and MTNL's implementation. According to the documents, BSNL will be given assistance in paying GST on the allocation of 4G spectrum. The new financial assistance for public sector enterprises comes on top of a Rs 69,000 crore (US$ 9.23 billion) relief package offered by the government in October 2019.
Union Finance Minister Nirmala Sitharaman also stated that the government will hold a spectrum auction this year to help commercial telecom carriers put out 5G services in the fiscal year 2022-23. She believes that the telecommunications industry, in general, and 5G in particular, can help to drive growth and create jobs.
She stated that 5% of annual collections from the universal service obligation budget will be earmarked to enable affordable broadband and mobile service proliferation in rural and isolated locations. “This will promote R&D and commercialisation of technologies and solutions. Our mission is that all villages and their residents should have the same access to e-services, communication facilities and digital resources as urban areas and their residents,” FM said. She went on to say that in 2022-23, the BharatNet initiative will award the contract for laying optical fibre in all villages, including distant ones, through a public-private partnership (PPP). “Completion is expected in 2025. Measures will be taken to enable better and more efficient use of the optical fibre,” FM said.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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