BSNL-BBNL Merger Finally Approved By Govt; Rs 1.64 Lakh Crore Will Be Infused To Revive BSNL!

BSNL-BBNL Merger Finally Approved By Govt; Rs 1.64 Lakh Crore Will Be Infused To Revive BSNL!
BSNL-BBNL Merger Finally Approved By Govt; Rs 1.64 Lakh Crore Will Be Infused To Revive BSNL!

The Union Cabinet on Wednesday cleared the merger of Bharat Broadband Network Limited (BBNL) into BSNL 

Expanding optical fibre cable network

With the merger, BSNL will get an additional 5.67 lakh kilometre of optical fibre laid across 1.85 lakh village panchayats using the Universal Service Obligation Fund (USOF).

With this, BSNL would have 14 lakh km of the optical fibre network.

Currently, it has an optical fibre cable network of over 6.83 lakh kilometre.

Revival package

Union Minister Ashwini Vaishnaw also announced a revival package of Rs 1,64,156 crore for BSNL spread over four years.

Elements of the revival package includes:

  • Advancement of services and its quality
  • Destress balance sheet of BSNL
  • To expand BSNL optical fibre network

Furthermore, the cabinet has decided to convert Rs 33,000 cr of statutory dues into equity.

Functions

BSNL will work as an executing arm of the government and ownership of assets will rest with the government

BBNL has a workforce of less than 200 which will be absorbed in BSNL

This April The government announced that BBNL will be merged with BSNL.

BharatNet project

BBNL is a special purpose vehicle (SPV), formed to implement the ambitious BharatNet project.

It has been touted to be the largest rural connectivity programme in the world which aims to “transform India into a digitally empowered society and knowledge economy”.

Through the project the government aims to address issues of internet penetration in rural India.

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