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State-run BSNL would invest over Rs 53,000 crore this year in upgrading its network to 4G and 5G, as well as renovating the country’s landline network, said Union Minister for IT and Telecom Ashwini Vaishnaw on Wednesday.
The government has authorised a Rs 52,937 crore capital injection in BSNL for the fiscal year beginning April 1, 2023.
BSNL’s capital injection is part of the Rs 1.64 lakh crore resuscitation plan announced last year, according to the minister, and most of BSNL’s balance sheet problems have already been handled.
“BSNL has raised new debt using the sovereign guarantees which were announced in the package. Now, the physical installation of new towers, upgradation from 2G, 3G to 4G and 5G and a major revamp in the landline systems of the MTNL and BSNL network will be taken up in this year using the capital allocation of Rs 53,000 crore which has been made for BSNL,” Vaishnaw said.
The government has set up Rs 1.23 lakh crore for postal and telecommunications infrastructure. The total budget comprises Rs 97,579.05 crore for the Telecom Department and Rs 25,814 crore for postal projects.
The government has set aside Rs 2,158 crore for an optical fibre cable-based network for the Defense Services, as well as Rs 715.8 crore for telecom projects in the North Eastern regions.
In her speech, Finance Minister Nirmala Sitharaman proposed the establishment of 100 laboratories in engineering universities to create applications using 5G services.
The government has increased non-tax income collection expectations from the telecom industry by 30% in the receipt budget for 2023-24, to Rs 89,469.17 crore.
“Revenue realisation in telecom is consistent. Telecom today is a sunrise industry and this is reflected in the higher revenue realisation which has been budgeted,” the minister said.
The government has raised the income forecast for the current fiscal year to Rs 68,784 crore, up from Rs 52,806 crore in the previous budget.
The government’s real income in 2021-22 was Rs 85,828 crore.
Non-tax revenue from the communication sector is mostly comprised of telecom operator licencing fees and payments for spectrum usage costs.
The Department of Posts has been given Rs 25,814 crore, which includes a Rs 250 crore capital infusion in the India Post Payments Bank.