The Rs 89,000 crore revitalization package for Bharat Sanchar Nigam Limited (BSNL) was approved by the Union Cabinet on Wednesday. The action has reportedly been done to improve BSNLs 4G and 5G services. Because of its strategic relevance, the Central Government thinks a government PSU in telecom should prosper.However, this is not the first revival package that is announced by the Centre for BSNL. Earlier, it was announced by the Centre in July 2022, which was worth Rs 1.64 lakh crore. This package was given in view to turn the telecom PSU into a more profitable organisation.The package included a non-cash component worth Rs 1.2 lakh crore spread over four years and a cash component at Rs 43,964 crore.The package put a strong emphasis on BSNLs financial health, the services quality and quantity, and the expansion of its optical fibre network. According to Union Minister Ashwini Vaishnaw at the time, the conversion of statutory dues totalling Rs 33,404 crore into equity will relieve pressure on BSNLs balance sheet.Additionally, the government combined BSNL and Bharat Broadband Network Limited (BBNL). Through the Universal Service Obligation Fund (USOF), BSNL acquired an additional 5.67 lakh km of optical fibre that was installed across 1.85 lakh village panchayats as a result of the merger.According to the sources, BSNL has already commenced the implementation of the project. Reportedly, the objective is to provide 4G coverage to approximately 25,000 villages, many of which currently lack internet connectivity.
