The Centre will provide additional financial support of Rs 7,443.57 crore to implement a voluntary retirement scheme in state-run telecom firms BSNL and MTNL.
As per the budget documents, the government will infuse Rs 44,720 crore into loss-making BSNL in the next financial year. "The provision is made for capital infusion for 4G spectrum, technology up-gradation and restructuring in BSNL," the explanatory note in the document said.
Besides the capital infusion, the government will provide additional financial support of Rs 7,443.57 crore to the telecom firm for a voluntary retirement scheme and Rs 3,550 crore as grant-in-aid for payment of GST.
Also Read | Centre to infuse Rs 44,720 crore into BSNL in 2022-23
The support for goods and services tax (GST) will be provided to BSNL for the payment of GST on the allocation of 4G spectrum, according to the documents.
BSNL is planning to commercial rollout of 4G services from August-September 2022.
Finance Minister Finance Minister Nirmala Sitharaman said that the government will conduct a spectrum auction this year, which will facilitate the roll-out of 5G services by private telecom operators during the financial year 2022-23.
The Finance Minister said the telecommunications sector in general and 5G, in particular, can enable growth and offer job opportunities.
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