New Delhi: The government has proposed a sharp increase in the allocation for the Department of Telecommunications, with the outlay set to rise to Rs 73,990 crore, largely driven by higher capital infusion for state-run telecom operator BSNL.
Telecom Minister Jyotiraditya Scindia said the enhanced allocation will support multiple priorities, including BharatNet, BSNL’s capital requirements such as spectrum costs, network expansion, and other internal needs.
Scindia said the telecom ministry’s allocation has seen a substantial jump from the revised estimate of around Rs 53,000 crore last year to nearly Rs 73,000 crore, reflecting an increase of almost 40 per cent. He noted that a significant portion of the funding is aimed at strengthening BSNL’s financial and operational position.
The minister said the government is focused on building BSNL “from strength to strength,” pointing to improvements in its performance. BSNL’s average revenue per user (ARPU) has increased by nearly 9 per cent, rising from about Rs 90 to nearly Rs 99, with the company aiming to soon cross the Rs 100 mark.
According to Scindia, revenue growth has been recorded across all three of BSNL’s business verticals, necessitating fresh capital expenditure alongside internal cash flows to support its revival strategy.
The proposed budget also includes allocations for the rural broadband initiative BharatNet. Scindia said the incremental funding spans a wide range of requirements, from spectrum and network rollout to investments in towers, media infrastructure and power solutions, as the government seeks to accelerate telecom expansion and BSNL’s resurgence simultaneously.
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