Government releases first tranche of Rs 50 billion under recently announced revival package for BSNL

According to industry sources, the government has released the first tranche of Rs 50 billion from the recently announced Rs 1.64 trillion revival package for Bharat Sanchar Nigam Limited (BSNL). The Rs 1.64 trillion revival package includes a cash support of Rs 439.64 billion and non-cash support of Rs 1.20 trillion.

The funds released in the first tranche are expected to be utilised by the operator to clear dues to its vendors which include Indian Telephone Industries Limited (ITI Limited), Tejas Networks, Himachal Futuristic Communications Limited (HFCL), Vihaan Networks Limited (VNL), Sterlite Technologies Limited (STL) and others.

BSNL is reportedly expected to start clearing its pending dues within the next 15 days. Moreover, under the revival package, BSNL will be administratively allocated spectrum in 900/1800 MHz band at the cost of Rs 449.93 billion through equity infusion to help operator offer 4G services.