Subsidy of Rs 1250 for BSNL cleared by Cabinet


NEW DELHI: The Cabinet today cleared the long-pending remuneration of Rs 1,250 crore for open division telecom organization BSNL to bolster rustic landline associations introduced before April 1, 2002.

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"The Cabinet has given permission to provide subsidy of Rs 1,250 crore to BSNL as compensation for deficit incurred by BSNL in operating rural wire-line connections," said Frank Noronha, the government's Principal Spokesperson, on Twitter.

“The BSNL subsidy support will be given from the Universal Service Obligation Fund for the rural connections installed prior to 1 April, 2002”, he added.

The state-run telecom firm has requested that the administration give Rs 2,000 crore to bolster provincial wireline associations.

On the premise of the accommodation of BSNL and the nitty gritty data in appreciation of working provincial wire-line associations introduced before April 1, 2002, the deficiency per country wire-line association was evaluated at Rs 4,876 for 2011-12.

Appropriately, the deficiency from the provincial wire-line associations introduced before April 1, 2002 for 2011-12 and 2012-13 were assessed at Rs 1,593 crore and Rs 1,265 crore separately.

The Department of Telecom had paid appropriation for these associations with BSNL up to July 17, 2011.

In light of the pattern by then, controller Trai assessed endowment of Rs 1,500 crore for 2011-12 with impact from July 17, 2011 and Rs 1,250 crore for the consequent year powerful July 18, 2012.

BSNL has gotten Rs 1,500 crore appropriation and the Cabinet endorsed the pending measure of Rs 1,250 crore today.

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