Budget 2026: Capital infusion in BSNL to increase to Rs 28,473 crore

BSNL

• Centre allocates Rs 28,473 crore to BSNL for FY26-27, a 314 percent increase
• BSNL plans 22,000 new 4G sites and next-gen expansion with fresh funding
• Minister urges BSNL to boost subscribers, ARPU, and service quality

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The Centre has earmarked Rs 28,473 crore as capital infusion for Bharat Sanchar Nigam Ltd (BSNL) in the Union Budget 2026–27, representing a more than 314% jump over the revised allocation of Rs 6,885 crore in FY25-26, according to the Union Budget for 2026-27.

This comes after a sizeable infusion of Rs 71,940.02 crore in FY24-25, signalling sustained government backing for the state-run telecom operator as it presses ahead with network expansion and modernisation.

BSNL is close to finalising specifications for an additional 22,000 4G sites and is weighing further next-generation expansion plans supported by fresh funding.

The telco has already rolled out nearly one lakh 4G sites in collaboration with a Tata Consultancy Services-led consortium comprising Tejas Networks and the Centre for Development of Telematics (C-DoT). In May last year, it placed an advance purchase order for 18,685 more sites to widen coverage using indigenous technology, in line with the Centre’s push for a homegrown telecom stack.

Analysts say scaling up its 4G footprint is essential for BSNL to effectively compete with private operators. Following large-scale domestic deployment, countries including the United States have shown interest in Indian telecom technology as an alternative to legacy Chinese equipment.

The government has proposed a 38 percent increase in the allocation for the Ministry of Communications to Rs 73,990 crore in the Union Budget 2026–27, driven largely by a sharp rise in capital support for state-run telecom operator BSNL. The increased allocation is for various projects, including BharatNet, capital requirement of BSNL, including cost of spectrum, network rollout, and to meet internal requirements.

Communications Minister Jyotiraditya M. Scindia recently directed BSNL to accelerate subscriber additions, raise average revenue per user (ARPU), and sharpen its focus on quality of service (QoS).

During a detailed circle-wise performance review, he assessed revenue targets across service verticals, identifying best-performing circles and flagging gaps. While some circles recorded healthy growth in mobile subscribers and sequential improvement in ARPU, others were asked to step up corrective measures, including enhancing service offerings and customer retention.

QoS metrics such as network availability and Mean Time to Repair (MTTR) were reviewed, with several circles showing marked improvement. Despite operational gains, BSNL reported a net loss of Rs 1,357 crore in the September quarter, wider than both the preceding and year-ago periods.