The government will put in Rs 44,720 crore into loss-making state-owned telecom company Bharat Sanchar Nigam Limited (BSNL) in the next financial year, according to the union budget.
“The provision is made for capital infusion for 4G spectrum, technology up-gradation and restructuring in BSNL,” the explanatory note in the budget document said.
Besides the capital infusion, the government will provide additional financial support of Rs 7,443.57 crore to BSNL for a voluntary retirement scheme and Rs 3,550 crore as grant-in-aid for payment of GST.
The financial support for the voluntary retirement scheme (VRS) includes the implementation of the scheme at both BSNL and MTNL. The support for GST will be provided to BSNL for the payment of GST on the allocation of 4G spectrum, according to the budget.
The additional financial support for the public sector companies is in addition to the Rs 69,000-crore relief package the government provided them in October 2019.