Government Plans Massive ₹47,000 Crore Capex to Strengthen BSNL Network

As per the news report, the Department of Telecommunications (DoT) has revealed a new capital expenditure plan for Bharat Sanchar Nigam Limited (BSNL), marking another major step in strengthening India’s state-run telecom infrastructure. 

This initiative comes after a record investment in the previous year, underlining the government’s continued focus on improving connectivity and service quality for millions of subscribers.

New ₹47,000 Crore Capex Plan

The government has announced a fresh capital expenditure of ₹47,000 crore to enhance BSNL’s network. This follows last year’s record spend of ₹25,000 crore, which was utilised to install one lakh towers for 4G mobile services. The DoT confirmed the plan on its official social media channel, quoting Union Telecom Minister Jyotiraditya Scindia.

Focus on Expanding Telecom Infrastructure

The previous ₹25,000 crore project was largely executed by IT giant TCS and a consortium led by the Centre for Development of Telematics (C-DoT), which supplied telecom equipment to BSNL. With this new allocation, the focus will remain on expanding mobile coverage, improving service delivery, and preparing for future technology adoption.

Minister’s Growth Targets for BSNL

During a recent review meeting with BSNL’s circle and business unit heads, Minister Scindia set ambitious growth targets. He urged the company to increase its mobile service business by 50% over the next year, while also boosting enterprise business by 25% to 30% and fixed line services by at least 15% to 20%.

Driving Higher ARPU and Customer Satisfaction

A key priority outlined by the minister is raising BSNL’s Average Revenue Per User (ARPU) by improving customer satisfaction and acquiring new subscribers. Currently, BSNL’s ARPU varies significantly across service circles, from approximately ₹40 in some regions to over ₹175 in others.

Industry Comparison: Bharti Airtel and Jio 

In comparison, Reliance Jio is a subsidiary of Reliance Industries Limited (RIL), reported an ARPU of ₹208, and Bharti Airtel recorded ₹250 for the June quarter, reflecting the competitive environment in India’s telecom sector. 

Read More: Cognizant to Offer Salary Hikes to 80% Employees from November 1! 

Conclusion 

The government’s fresh investment is expected to equip BSNL with the capacity to compete more effectively with private sector operators.

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