DC Edit | BSNL, MTNL bailout welcome
Deccan ChronicleThe Union Cabinet’s decision to approve Rs 89,000-crore bailout package for Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd — two loss-making public sector telecom service providers — is a step in the right direction, given the strategic importance of these entities. Cumulatively, the government spent Rs 3.22 lakh crores for two state-owned units in the last four years — averaging at Rs 80,500 crores a year or Rs 220 crores a day. As a result of the first two packages and lower staff costs, BSNL began to record operating profits since FY 2021-22 and the total debt of BSNL has reduced from Rs 32,944 crores to Rs 22,289 crores. BSNL has recently signed an agreement with Tata Consultancy Services for the deployment of the 4G network across India, when Reliance Jio and Airtel are competing to roll out 5G Internet — a development that paints BSNL as an entity that cannot exist in the highly-competitive telecom sector without crutches handed out by the government using taxpayers’ money.