BSNL-BBNL Merger : Under the chairmanship of Prime Minister Narendra Modi (PM Narendra Modi), on Wednesday (27 July 2022). In this meeting, decisions were taken on many big issues. A big decision has also been taken regarding the cabinet and cabinet committee on economic affairs (CCEA). The Cabinet has approved a revival package of Rs 1.64 lakh crore for the revival of Bharat Sanchar Nigam Limited (BSNL)
The information given by the Union Minister
Giving information about the decisions of the cabinet meeting, Union Minister Ashwini Vaishnav said, “The government has approved a revival package of Rs 1,64,156 crore for the revival of BSNL. Apart from this, the cabinet approved the merger of Bharat Sanchar Nigam Limited (BSNL) and Bharat Broadband Network Limited (BBNL).
What will be the benefit to you?
It is worth noting that with this merger, BSNL will now have complete control of 5.67 lakh kilometers of optical fiber spread across the country. For this, the government will issue a bond of Rs 23,000 crore for BSNL in the next three years. At the same time, the government will issue a bond of Rs 17,500 crore in 2 years for MTNL. The Union Minister further said, ‘The government has approved the revival package of Rs 1,64,156 crore for the revival of BSNL. This will help the telco to upgrade to 4G.
What is the preparation of the Government?
BSNL has optical fiber network of more than 6.80 lakh km. At the same time, BBNL has laid 5.67 lakh km optical fiber in 1.85 lakh gram panchayats of the country. BSLN will get control of fiber laid by BBNL through Universal Service Obligation Fund (USOF).
Ashwini Vaishnav said that statutory dues of Rs 33,000 crore of BSNL will be converted into equity. Also, the company will issue bonds to pay off bank loans of the same amount (Rs 33,000 crore). The Cabinet has also approved the merger of BSNL and Bharat Broadband Network Limited (BBNL), he said.
The Rs 1.64 lakh crore revival plan, apart from rejuvenating BSNL, is also expected to generate significant amount of employment. “The government is expected to create 1 lakh jobs,” Vaishnav said.
“We will hold BSNL for very clearly defined results, clearly defined goals… We are using taxpayers money here,” he said.