Now Reading: BSNL proposes Rs 77,000 crore capex; FY27 spend cut
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BSNL proposes Rs 77,000 crore capex; FY27 spend cut
BSNL has proposed a Rs 77,000 crore capital expenditure plan over five years to add 200,000 4G sites, roll out 5G in high-traffic areas and achieve 98% nationwide coverage by FY29, the…
The Story in Brief
BSNL has proposed a Rs 77,000 crore capital expenditure plan over five years to add 200,000 4G sites, roll out 5G in high-traffic areas and achieve 98% nationwide coverage by FY29, the Department of Telecommunications told a parliamentary panel. The state-owned operator’s loss widened to Rs 4,738 crore in FY26 as depreciation costs surged, though revenue rose 1.7% to Rs 21,199 crore. The panel has asked for a review of the capex until a decision on infrastructure sharing with Vodafone Idea is finalised.
Separately, BSNL has slashed its FY27 expenditure under the Digital Bharat Nidhi programme from an initial Rs 25,985 crore to Rs 5,910 crore, citing supply chain disruption from the Israel-US-Iran conflict, right-of-way issues in Kerala, Karnataka and Goa, and litigation by unsuccessful bidders. The telecom department questioned the frequent changes, but BSNL defended them as prudent financial management rather than a planning lapse.
The Indian Opinion
The usual narrative paints BSNL as a turnaround story waiting to happen. Yet the state-owned telco’s fresh Rs 77,000 crore wishlist comes alongside a sharp FY27 outlay cut and widening losses. The parliamentary panel is right to question planning discipline, especially when external factors and litigation are blamed for repeated revisions. If the government cannot enforce accountability on its own PSU, how will private investment be assured? Watch whether BSNL’s proposed collaboration with Vodafone Idea materialises before any new capex is approved.
Sources (2): livemint.com, telecom.economictimes.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
