Lok Sabha Question No. 549 (STARRED), answered on 2017-04-12
Subject: Financial Assistance to BSNL and MTNL
Ministry: COMMUNICATIONS
Asked by: LAXMI NARAYAN YADAV

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA STARRED QUESTION NO.549 TO BE ANSWERED ON 12 TH   APRIL, 2017

## FINANCIAL ASSISTANCE TO BSNL AND MTNL

†*549. SHRI LAXMI NARAYAN YADAV:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether  the  Government  proposes  to  provide  financial  assistance/package  to  the Mahanagar Telephone Nigam Limited (MTNL) and Bharat Sanchar Nigam Limited (BSNL) on the lines of financial packages given to Air India;
- (b) if so, the details thereof and if not, the reasons therefor; and
- (c) the  other  measures  taken/being  taken  by  the  Government  to  tide  over  the  debt liability, if any, of the said Telecom Public Sector Units?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

- (a) to (c) A Statement is laid on the Table of the House.

Contd…….2/-

STATEMENT TO BE LAID ON THE TABLE OF THE LOK SABHA IN RESPECT OF PARTS (a) TO (c)  OF  LOK    SABHA  STARRED  QUESTION  NO.549  FOR    12 TH   APRIL,  2017  REGARDING 'FINANCIAL ASSISTANCE TO BSNL AND MTNL '.

(a) to (c) As on 31 st March, 2017,  the total debt liability of Bharat Sanchar Nigam Limited (BSNL)  and      Mahanagar  Telephone  Nigam  Limited  (MTNL)      is    Rs.3218  crores  and Rs.15058 crores respectively.   Government has provided financial assistance to  BSNL and MTNL in the following forms:

- i) Refund  of  surrendered  BWA  (Broadband  Wireless  Access)  spectrum  in  two service areas held by MTNL and in 6 service areas held by BSNL.  Under this head, Rs. 4533.97 crore has been refunded to MTNL through bonds and Rs. 6724.51 crore has been refunded to BSNL through budgetary resources.
2. ii) The pension liability of MTNL for its staff who got absorbed from Department of Telecommunications (DoT), has been taken over by the Government.
3. iii) Notional  loan  of  Rs.  1411  crore  to  BSNL  which  was  due  to  be  paid  to  the Government was waived-off.
4. iv) Financial support of Rs. 492.26 crore has been given to MTNL on account of liability arising from levy of Minimum Alternate Tax (MAT).
- v) Refund of Rs. 458.04 crore to MTNL and Rs. 169.16 crore to BSNL on account of surrender of CDMA (Code Division Multiple Access) spectrum.

Government has also assigned some projects to BSNL   to supplement its revenue, which are as follows:-

- i) Comprehensive  Telecom  Development  Plan  for  the  North-Eastern  Region (NER)  for  provision  of  mobile  services  in  uncovered  villages  in  Arunachal Pradesh and two districts of Assam at estimated project cost of Rs. 1975.38 crore.
2. ii) Implementation of Transmission-Media Plan for NER at an estimated cost of Rs.295.97 crore on 10.9.2014.
3. iii) Providing mobile connectivity in 2199 identified locations in Left  Wing Extremism (LWE) affected areas at an estimated cost of Rs. 3567.58 crores on 4.6.2013.
4. iv) Implementation of Comprehensive Telecom Development plan for Andaman & Nicobar  Islands  and  Lakshadweep  Islands  through  augmentation  of  satellite connectivity/bandwidth at an estimated cost of Rs. 120.49 crores on 7.11.2014.
- v) Network  for  Spectrum  (NFS)  project  for  setting  up  of  alternate  network  of Defence  by  laying  57,000  kms  Optical  Fibre  Cable  (OFC)  at  a  total  cost  of Rs.13,334 crores.  Amount of Rs.2220 crores, Rs.3210 crores were allotted to BSNL during Financial Years 2015-16 and 2016-17 respectively.
6. vi) National  Optical  Fiber  Network  (NOFN)  now  known  as  Bharat-Net  project  to provide  high  speed  broadband  facility  to  all  2.5  lakh  Gram  Panchayats throughout the country is being carried out mostly by BSNL.  This project is fully funded by the Government.

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