Government not privatising telecom firms BSNL and MTNL, says minister

The government is not privatising state-run telecom firms Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL), Minister of State for Rural Development and Communications Pemmasani Chandra Sekhar said on Wednesday.

Replying to a question in Parliament, Sekhar said that last month, the government had approved an additional capital expenditure plan of Rs 6,982 crore (Rs 69.82 billion) for BSNL.

In February, the Union Cabinet reportedly approved Rs 6,000 crore (Rs 60 billion) towards 4G network expansion of MTNL and BSNL, according to a CNBC Awaaz report.

In January, a Reuters report indicated that the government decided to abandon its ambitious privatisation plans for several state-owned enterprises, including MTNL. This shift in policy comes despite the initial 2021 announcement to privatise most state-run companies, including sectors sensitive to national interest.

Financial package for BSNL, MTNL

Last month, the Union Cabinet had sanctioned a financial package of around Rs 6,000 crore to accelerate the expansion of Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited’s (MTNL) 4G networks.

This funding will help the state-run telecom firms strengthen and broaden their network infrastructure. The allocated amount will be used to extend BSNL and MTNL’s 4G coverage nationwide. As part of the plan, around 100,000 new 4G sites will be deployed to improve connectivity and enhance service quality for consumers.

An additional Rs 6,000 crore will be required to complete the expansion. So far, the government has extended financial assistance of Rs 3.22 trillion to BSNL and MTNL through three revival packages.

Additionally, BSNL and MTNL have entered into a 10-year agreement for 4G network sharing, aimed at optimising resources and improving service delivery.