Modi government approves ₹6,000cr funding for BSNL's 4G expansion: Report
What's the story
The Indian government has approved an additional ₹6,000 crore for the 4G expansion of Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL), as per Moneycontrol.
The move comes after MTNL, which operates in Delhi and Mumbai, sealed a partnership with BSNL to offer 4G services to its customers.
The partnership is part of a decade-long agreement to enhance network services and improve 4G connectivity.
Funding utilization
Additional funding to boost 4G site deployment
The additional ₹6,000 crore funding is likely to be utilized for the installation of some one lakh 4G sites.
This is part of BSNL's larger project, which is estimated to cost around ₹19,000 crore in total.
The company had already spent nearly ₹13,000 crore on the project before seeking the remaining amount from the Department of Telecommunications (DoT).
Proposal progression
DoT forwards BSNL's proposal to Union Cabinet
After due diligence, the DoT sent BSNL's proposal for the remaining ₹6,000 crore to the Union Cabinet.
Reportedly, this was on the agenda of a Cabinet meeting last Friday evening, and is believed to have been approved.
However, no official announcement was made during the press conference after the meeting.
Investment history
Continued investment in BSNL and MTNL
Since 2019, the Indian government has pumped in around ₹3.22 lakh crore into BSNL and MTNL via three revival packages.
This latest ₹6,000 crore funding approval for their 4G expansion plans continues the government's streak of support for the state-owned telcos.
The move will likely go a long way in boosting their network services and improving 4G connectivity for customers across India.