The Union Cabinet has approved a revival package of Rs 1.64 lakh crore for the revival of Bharat Sanchar Nigam Limited (BSNL).
The cabinet has also given green signal to the merger of BSNL and Bharat Broadband Network Limited (BBNL).
A proposal to this effect was approved in the meeting of the Union Cabinet chaired by Prime Minister Narendra Modi. With this merger, BSNL will have complete control of 5.67 lakh km of optical fiber of BBNL.
The cabinet has also approved a project to take 4G mobile services to all the villages of the country. This work will be done through Universal Service Obligation Fund.
It will cost around Rs 26,316 crore. Union Minister Ashwini Vaishnav gave this information after the cabinet meeting.
The Union Minister said that this package will help the telecom company to upgrade to 4G. At the same time, the merger of BSLN and BBNL will also strengthen the combined company. With this merger, BSNL will now have complete control of 5.67 lakh km of optical fiber of BBNL spread across the country.
BSNL has more than 6.80 lakh km of optical fiber network. At the same time, BBNL has laid 5.67 lakh km of optical fiber in 1.85 lakh gram panchayats of the country. BSLN will get control of the fiber laid by BBNL through Universal Service Obligation Fund (USOF).
To raise funds, the government will issue bonds worth 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 for MTNL in 2 years.
Also Read – Stock Market Update Today: Today’s Top Gainers