State run teleocm operator Bharat Sanchar Nigam Ltd (BSNL), has received a revival package of ₹89,000 crore from the Cabinet.
The Union Cabinet chaired by Prime Minister Narendra Modi approved the third revival package for BSNL. This includes allotment of 4G/5G spectrum for BSNL through equity infusion.
As per a government press release, this revival package is expected to help BSNL emerge as "a stable telecom service provider focused on providing connectivity to remotest parts of India".
BSNL has been facing turbulent times due to being battered by competition from rivals such as Reliance Jio, Bharti Airtel, and Vodafone Idea, all of which offer low-cost 4G voice calls and data to customers.
Revival packages for BSNL
This, however, is not the first revival package for BSNL announced by the Centre. Before this, the government approved the first revival package in 2019 worth Rs 69,000 crore.
The Centre also announced a revival package for BSNL in July 2022 worth Rs 1.64 lakh crore to provide 4G and 5G services to turn the telecom PSU into a more profitable organisation. The package comprised cash component worth Rs 43,964 crore and non-cash component worth Rs 1.2 lakh crore spread over a duration of 4 years.