According to the union budget, the government will invest Rs 44,720 crore in the loss-making state-owned company Bharat Sanchar Nigam Limited (BSNL) in the coming financial year.
“Provision has been made for capital infusion for 4G spectrum, technology upgrade and restructuring in BSNL,” the budget document said.
In addition to the capital injection, the government will provide additional financial support of Rs 7,443.57 crore to BSNL for a voluntary pension scheme and Rs 3,550 crore as a grant for the payment of GST.
The financial support of the Voluntary Withdrawal Scheme (VRS) includes the implementation of the scheme at both BSNL and MTNL. The support for GST will be provided to BSNL for the payment of GST in the allocation of 4G spectrum, according to the budget.
The additional financial support for the public sector companies is in addition to the aid package of Rs 69,000 crore that the government provided them in October 2019.