The BSNL CEO revealed that he had contacted the government for assistance in addition to the Rs 69,000 crore relief package announced in 2019.
The government has been contacted by state-owned telecom giant BSNL for Rs 40,000 crore in financial assistance, half of which it requires in the form of a sovereign guarantee to pay off short-term debt.
BSNL Chairman and Managing Director PK Purwar told PTI that the corporation does not require any extra debt and that its operations are self-sustaining.
“We don’t require any more debt. We have requested a sovereign guarantee of Rs 20,000 crore in order to repay our short-term debt and issue long-term bonds. If we need to set up 1 lakh node B (mobile sites) for mobile network expansion, we’ll need Rs 20,000 crore “Purwar remarked.
The BSNL CEO revealed that he had contacted the government for assistance in addition to the Rs 69,000 crore relief package announced in 2019.
Also read : Alert! This Android Malware Takes Banking Information; Here’s How To Avoid Becoming A Victim
Follow us on Twitter, Telegram and Instagram
BSNL’s debt burden is at Rs 30,000 crore, making it one of the lowest in the telecom sector. Purwar is also the CEO of MTNL, which is being merged with BSNL. The government has already given BSNL permission to handle mobile services in Delhi and Mumbai, which were formerly managed by MTNL.
Purwar’s additional role as chairman and managing director of loss-making telecom giant MTNL was extended by the Cabinet Appointments Committee on Wednesday for another year, till October 2022.
In October 2019, the government offered BSNL and MTNL a combined revival package worth around Rs 69,000 crore, which helped both telecom PSUs lower their losses.
BSNL’s losses have shrunk to Rs 7,441 crore in 2020-21, down from Rs 15,500 crore in 2019-20, according to government figures.
MTNL lost Rs 2,554 crore in the previous fiscal year, compared to Rs 3,811 crore in 2019-20.
Also read : Changes In Auto-Debit Rules That Account’s Into Effect From October
Follow us on Twitter, Telegram and Instagram
