BSNL, MTNL get a boost for 4G; cabinet approves Rs 6,000 crore more: Sources

MTNL, a government-owned telecom service provider operating in Delhi and Mumbai, finalized a deal with BSNL a few months ago to bring 4G services to its users.

Two public sector telecom companies -Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL)-have received a significant boost for their 4G rollout plans. According to sources, the government has decided to allocate an additional Rs 6,000 crore for BSNL 4G expansion.

MTNL, a government-owned telecom service provider operating in Delhi and Mumbai, finalized a deal with BSNL a few months ago to bring 4G services to its users. Under a 10-year agreement, MTNL aims to enhance its network services, offering improved 4G connectivity to its customer base.
Sources revealed that the about Rs 6,000 crore allocation was on the agenda of the Cabinet meeting held last Friday evening and is believed to have been approved. However, it was not officially announced during the press conference. This additional funding will be utilized for the deployment of around 1 lakh 4G sites.

To execute this plan, BSNL required an extra Rs 6,000 crore. Out of the total project cost of around Rs 19,000 crore, the company had already spent approximately rs 13,000 crore. For the remaining rs 6,000 crore, BSNL approached the Department of Telecommunications (DoT), which, after due consideration, forwarded the proposal to the Cabinet.

Since 2019, the government has invested approximately ₹3.22 lakh crore in BSNL and MTNL through three revival packages.