BSNL-BBNL Consolidation: On Wednesday, July 27, 2022, Prime Minister Narendra Modi will preside. This meeting resolved a number of major issues. A significant decision was also made concerning the cabinet and the Cabinet Committee on Economic Affairs (CCEA). The cabinet approved a Rs 1.64 lakh crore revival package for Bharat Sanchar Nigam Limited (BSNL).
Union Minister Ashwini Vaishnav said of the cabinet meeting's decisions, "The government has approved a revival package of Rs 1,64,156 crore for the revival of BSNL." The cabinet also approved the merger of Bharat Sanchar Nigam Limited (BSNL) and Bharat Broadband Network Limited (BBNL).
It is worth noting that, as a result of this merger, BSNL will now have complete control over 5.67 lakh kilometres of BBNL optical fibre spread across the country. The government will issue bonds worth Rs 23,000 crore for BSNL over the next three years to fund this. Simultaneously, the government will issue a Rs 17,500 crore bond for MTNL in two years. 'The government has approved a revival package of Rs 1,64,156 crore for the revival of BSNL,' the Union Minister added. This will aid the telecom company's transition to 4G.
BSNL's optical fibre network spans more than 6.80 lakh kilometres. At the same time, BBNL has laid 5.67 lakh kilometres of optical fibre in the country's 1.85 lakh gramme panchayats. Through the Universal Service Obligation Fund, BSLN will gain control of the fibre laid by BBNL (USOF).
According to Ashwini Vaishnav, BSNL's statutory dues of Rs 33,000 crore will be converted into equity. In addition, the company will issue bonds to repay the same amount of bank loans (Rs 33,000 crore). He also stated that the merger of BSNL and Bharat Broadband Network Limited has been approved by the cabinet (BBNL).