The government has proposed the allocation of Rs 1.28 trillion (Rs 1.11 trillion and Rs 1.7 trillion) in the Budget estimate 2024-25 for telecom projects and public sector firms under the Department of Telecommunications (DoT).
The additional provision of Rs 1.7 trillion is being met from the balances available under the Universal Service Obligation Fund (USOF) and will be utilised for compensation to telecom service providers, BharatNet project and research and development.
As per the Union Budget, over Rs 1 trillion of the budget is meant for Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) related expenses, including Rs 829.16 billion infusion in BSNL for technology upgradation and restructuring.
The budget has also proposed to allocate Rs 175.1 billion for pensionary benefits of the employees of the DoT, including employees absorbed in BSNL and MTNL. In addition, the government has proposed to allocate Rs 36.68 billion for payment of principal amount of MTNL bonds.
Further, the budget has made provision of Rs 344.6 million for technology development and investment promotion, Rs 700 million for champion service sector scheme and Rs 18.06 billion for production linked incentive (PLI) scheme.
