Rs 1.64 lakh crore package approved for BSNL, 30,000 villages will have mobile connectivity: Ashwini Vaishnav

The government has decided to release a package of Rs 1.64 lakh crore to get the state-owned telecom company BSNL out of losses.This has been approved in the cabinet meeting chaired by PM Narendra Modi today.Under this two decisions have been taken.

First, a package will be issued to revive BSNL.Apart from this, work will be done for mobile connectivity in those 29,616 villages, where this facility has not reached till now.A saturation package of Rs 26,316 crore has also been fixed for this.PM Narendra Modi had made this promise on the occasion of Independence Day last year.

Union IT Minister Ashwini Vaishnav gave this information on Wednesday.He said that the merger of BSNL and BBNL has also been approved in the cabinet meeting.He said that this will improve the financial condition of both the companies and will also lead to better synergy for working.

The IT Minister said that 19,722 towers will be installed to increase mobile connectivity across the country.4G coverage will be provided in all such villages, which currently lack mobile connectivity.He said that the government is committed to bring mobile connectivity to every part of the country. 

It is believed that the government has taken this step to establish BSNL once again in the telecom industry.In the last few years, the market share of BSNL has weakened due to the low cost of 4G service by Reliance Jio and Voda Idea.On behalf of the government, it has also been decided to pay off the debt of Rs 30,000 crore on BSNL through low-interest bonds.The government was worried about the ever-increasing losses of BSNL and this is the biggest effort ever to revive it.