BSNL-BBNL Merger: A big update has come on the merger of BSNL. Prime Minister Narendra Modi has approved the merger of BSNL. A major decision has also been taken regarding the Cabinet Committee on Economic Affairs (CCEA). Actually, these decisions were taken in the cabinet meeting chaired by PM Modi. The cabinet approved a revival package of Rs 1.64 lakh crore for the revival of Bharat Sanchar Nigam Limited (BSNL). That means now BSNL will be merged soon.
Union Minister gave information
Union Minister Ashwini Vaishnav said, ‘The government has approved a revival package of Rs 1,64,156 crore for the revival of BSNL. Apart from this, the cabinet approved the merger of Bharat Sanchar Nigam Limited (BSNL) and Bharat Broadband Network Limited (BBNL). Customers will also benefit from the merger of BSLN with BBNL.
Know what benefit you will get?
Significantly, with this merger, now the complete control of 5.67 lakh kilometers of BBNL’s optical fiber spread across the country will come into the hands of BSNL. For this, the government will issue a bond of Rs 23,000 crore for BSNL in the next three years. At the same time, the government will issue a bond of Rs 17,500 crore for MTNL in 2 years. The Union Minister further said, ‘The government has approved a revival package of Rs 1,64,156 crore for the revival of BSNL. This will help in upgrading the telecom company to 4G.
What is the preparation of the government?
The government has made special planning regarding this merger. BSNL has more than 6.80 lakh kilometers of an optical fiber network. At the same time, BBNL has laid 5.67 lakh kilometers of optical fiber in 1.85 lakh gram panchayats of the country. BSLN will get control of the fiber laid by BBNL through the Universal Service Obligation Fund (USOF). Ashwini Vaishnav told that BSNL’s statutory dues of Rs 33,000 crore will be converted into equity. Along with this, the company will issue bonds for repayment of a bank loan of the same amount (Rs 33,000 crore). He said that the cabinet has also approved the merger of BSNL and Bharat Broadband Network Limited (BBNL).
(Disclaimer: The performance information provided here is not just investment advice. Investing in the stock market is subject to risks and please consult your advisor before investing.)