Business Matters | Why does BSNL need a rescue package?

BSNL – or Bharat Sanchar Nigam Ltd. - was incorporated in September 2000 as a company and took over the business of providing telephone connectivity from the central government’s Dept of Telecom Services.

The Union Cabinet last week approved a ₹1.64–lakh crore package for its revival. The Cabinet had in 2019 too cleared a package worth nearly ₹70,000 crore for the revival of BSNL and MTNL, mainly to fund the VRS package for the two firms.

So, what is the reason for the recapitalisation of BSNL? And for a company which was profitable for much of the first decade of this century, what went wrong?

Script and presentation: K. Bharat Kumar
Production: Shibu Narayan
Videography: Johan Sathyadas

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