Telecom

Finance Ministry dismisses rumors of BSNL shutdown

Published

5 years ago

October 13, 2019

Anand N

BSNL is in the news for all the wrong reasons. The media recently reported that BSNL is on the verge of closure. However, DoT Secretary Anshu Prakash disclosed that the Finance Ministry is not in favour of closing down the state-run BSNL and will boost the company to attain profitability.

Responding to media on the sidelines of the TAIPA AGM, Anshu added that the information regarding possible shut down of the BSNl is completely incorrect. Even though the BSNL revival package has been approved by Home Minister Amit Shah, Nirmala Sitharaman and Ravi Shankar Prasad, the finance ministry officials have raised over 80 objections to the package proposed by the Telecom ministry.

According to sources, the Department of telecom had proposed Rs 74000 crore package for BSNL since the closing down of the company would cost a whopping Rs 95000 crore. While the voluntary retirement scheme plan will get Rs 29000 crore, the state-owned company is planning to spend Rs 20000 crore for the launch fo 4G services.

The remaining Rs 13000 crore will be used as fund capex for 4G services. The package was developed in such a way that BSNL would break even by Q1 2014. The department has formed a high-level committee to look into the revival of BSNL and MTNL. There were reports that both the companies would be merged. However, the chances are bleak taking into account the various factors.

BSNL is currently the largest telecom service provider with access to even remote villages. The company faced severe crisis after the arrival of the Reliance Jio 4G services. The company is currently offering landline, broadband, and 3G mobile services across India. The Broadband connection is used by millions of users all over India since they offer reliability with good service.

Telecom

BSNL starts 4G push in India with tender floating

Published

5 years ago

April 12, 2020

Anand N

BSNL is gearing up to launch 4G services in India with an overall budget of Rs 11000 crore. The state-run Telecom company has started the process with the launch of tenders. According to company sources, BSNL has called for tenders to install 50000 4G sites in North, East and South zones including 7000 new sites for Delhi and Mumbai. The overall investment is pegged at around Rs 8697 crore. While the vendors can apply for contracts till May 8, the bids will be opened on May 9. Moreover, BSNL will upgrade 43000 2G and 3G towers to 4G with an approximate cost of Rs 3500 to Rs 4000 crore.

As per the documents, the company with the lowest evaluated price of the technically and commercially responsive bids (L1) will be given a choice to select three out of five zones. The L2 bidder will be given the freedom to choose any other zones at L1 price. If the L2 declines to accept the offer, the L3 bidder will receive a chance at L1 price. If the L3 bidder also refuses to accept the offer, then L1 bidder will have to undertake the work at their price. The fifth zone has been allocated to ITI Limited against reservation quota at L1 price. If ITI refuses, then L1 bidder will have to accept the offer at the L1 price.

The Government of India had approved a revival package to the tune of Rs 70000 crore for BSNL in 2019. Those employees who are above 50 years of age were made to accept the voluntary retirement scheme (VRS) pegging at Rs 29937 crore. As many as 78300 BSNL and 14378 MTNL employees had opted for VRS. Just recently, the Government had released Rs 10000 crore towards VRS, leave encashment, EPF and other related payments.

BSNL is currently involved in the rapid expansion of services because of the drastic reduction in staff expenses. The company has requested the Government to provide a sovereign guarantee of Rs 15,000 crore, which will enable them to raise money from the market.

The finance ministry is currently processing the application because it is part of the revival package approved by the Union Cabinet. The Government will provide Rs 23814 crore towards administrative allocation of 4G spectrum. Moreover, both BSNL and MTNL will monetize their assets worth Rs 38000 crore over a period of four years.