Cabinet Decision / 89,000 crore will be spent in BSNL, BSNL will run at the speed of 5G

Zoom News : Jun 07, 2023, 05:43 PM
Cabinet Decision: The Union Cabinet on Wednesday approved a Rs 89,000 crore revival plan for Bharat Sanchar Nigam Limited (BSNL). The package will be used to enhance BSNL's 4G and 5G services. The media report quoted sources as saying that the central government believes that a government PSU in telecom should flourish because of its strategic importance.

Package not received first time

However, this is not the first revival package for BSNL announced by the Centre. The Center had given a revival package to BSNL in July 2022 to provide 4G and 5G services to turn the telecom PSU into a profitable company. The package was focused on advance service and quality, recovery of BSNL's balance sheet and expansion of BSNL's optical fiber network. The government also merged Bharat Broadband Network Limited (BBNL) with BSNL.

Condition worsened after Jio

Even though the government is talking about the revival of BSNL, but at one time it was also preparing to sell this company, but after not getting any buyer, the idea of its revival came. The reason for this is also that a lot of debt had come on BSNL. On the other hand, due to the entry of Jio in the market, the condition of big giants has worsened and many were also thrown out of the market. On the other hand, MTNL was also running in huge losses. After which the government has announced the merger of MTNL with BSNL.

MTNL shares rocketed

MTNL shares have rocketed after the news of BSNL's revival package. At present, the company's stock is trading at Rs 22.43 with a gain of 13 per cent. By the way, the company's stock also reached Rs 22.58 during the trading session. Well today the company's stock opened at Rs 19.90. The company's stock had closed at Rs 19.94 on Tuesday. At present, the market cap of the company is Rs 1,426.32 crore.