Home India Ministry of Communications Parliament Question: Financial Assistance to BSNL...
Date: 2025-07-30 Category: Not Applicable State: Union Government Country: India

Parliament Question: Financial Assistance to BSNL

Issued by Ministry of Communications · Not Applicable

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Executive Summary & Key Takeaways

**Subject:** Status of Bharat Sanchar Nigam Limited (BSNL) Revival and Restructuring Efforts **Summary:** This document summarizes the Indian government's efforts to revive and restructure Bharat Sanchar Nigam Limited (BSNL) since 2019, as of July 30, 2025. The government has implemented multiple financial assistance packages. The first revival package, amounting to approximately Rs. 69,000 Crores, was provided in 2019 to reduce BSNL/MTNL's operating costs. A second revival package of approximately Rs. 1.64 Lakh Crores was allocated in 2022, focusing on capital infusion, debt restructuring, and viability gap funding for rural telephony. In 2023, the government approved the allocation of 4G/5G spectrum to BSNL with a total outlay of approximately Rs. 89,000 Crores. In 2025, an additional Rs. 6,982 Crores was approved as CAPEX support for the nationwide 4G network rollout. As a result of these financial interventions, BSNL has reported operating profits starting from the financial year 2020-21. Key challenges to BSNL's competitiveness include the previous lack of widespread 4G services and intense competition within the telecom sector. To address these challenges and align with the Atmanirbhar Bharat initiative, BSNL has placed purchase orders for indigenously developed 4G sites for pan-India deployment. As of June 30, 2025, 95,537 4G sites have been installed, with 90,035 sites currently operational. The deployed equipment is technologically upgradable to 5G. The supply of 4G equipment commenced in September 2023.

Key Entities Referenced

Bharat Sanchar Nigam Limited (BSNL): A telecommunications company that is the recipient of financial assistance and subject to revival and restructuring efforts. Ministry of Communications: The Indian government ministry responsible for telecommunications, which oversees BSNL. Lok Sabha: The lower house of the Parliament of India, where the question regarding financial assistance to BSNL was raised. DR. KIRSAN NAMDEO: The member of parliament who raised the unstarred question regarding financial assistance to BSNL. DR. PEMMASANI CHANDRA SEKHAR: The Minister of State for Communications and Rural Development who provided the answer to the Lok Sabha question. Atmanirbhar Bharat: An initiative of the Government of India focused on promoting self-reliance and indigenous production, relevant in the context of BSNL's 4G deployment. BSNLMTNL: Combined entity of Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL). 4G/5G spectrum: Refers to the radio frequencies allocated to BSNL for the rollout of its fourth and fifth generation mobile network services.
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GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS LOK SABHA UNSTARRED QUESTION NO. 1770 ANSWERED ON 30TH JULY, 2025 FINANCIAL ASSISTANCE TO BSNL 1770. DR. KIRSAN NAMDEO: Will the Minister of COMMUNICATION be pleased to state: (a) the current status of the revival and restructuring efforts of Bharat Sanchar Nigam Limited (BSNL); (b) the total amount of financial assistance provided to BSNL under the Government’s revival packages since 2019; (c) the details of challenges affecting BSNL’s competitiveness and the Government’s strategy to address them; and (d) the status of BSNL’s 4G and 5G rollout and the timeline for nationwide implementation? ANSWER MINISTER OF STATE FOR COMMUNICATIONS AND RURAL DEVELOPMENT (DR. PEMMASANI CHANDRA SEKHAR) (a)&(b) Government has taken various steps for revival of BSNL as mentioned below:  In 2019, first revival package amounting to around Rs. 69 Thousand Crores was given that brought down the operating costs of BSNL/MTNL.  In 2022, revival package amounting to around Rs. 1.64 Lakh Crores was given. It focused on infusing fresh capital, restructuring debt, viability gap funding for rural telephony etc.  In 2023, Government approved the allotment of 4G/5G spectrum to BSNL with the total outlay of around Rs. 89 Thousand Crores.  In 2025 an additional amount of Rs 6982 Crores has been approved as additional CAPEX support for rollout of 4G network by BSNL across the country. As a result of these packages, BSNL has started earning operating profits from F.Y. 2020- 21. (c)&(d) Lack of 4G services on full scale and stiff competition in the Telecom Sector are some of the challenges affecting the BSNL’s competitiveness. In line with Atmanirbhar Bharat initiative, BSNL has placed purchase order for indigenously developed 4G sites for pan India deployment. Supply of 4G equipment has started from September 2023 and as on 30.06.2025, total 95,537 4G sites have been installed and 90,035 sites are ON-Air. The equipment is 5G upgradable from technology perspective. ***** 1

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