Union Budget 2026: BSNL to Receive ₹28,473 Crore Equity Infusion in FY27

The Union Budget has provided fresh financial support to Bharat Sanchar Nigam Limited (BSNL) through a planned equity infusion and additional funding support, as part of the government’s continued revival and network expansion strategy for the state-run telecom operator. 

₹30,188 Crore Total FY27 Support Package 

The Centre has earmarked ₹28,473 crore as equity infusion into BSNL for FY27. This is about 33% lower than the ₹33,757 crore provided in the FY26 Budget Estimates, which was later revised down to ₹6,885 crore for the current financial year ending March 31, 2026. 

In addition to equity support, the Budget provides ₹1,200 crore as viability gap funding and ₹476 crore toward voluntary retirement payouts. Together, these take the total FY27 allocation for BSNL to ₹30,188 crore. 

Funding Tied to Expanded 4G Rollout 

The FY27 allocation is linked to BSNL’s planned network expansion. The operator is expected to add around 23,000 new 4G sites during FY27, on top of the ongoing rollout of 100,000 4G sites under its broader revival programme. 

The expansion is aimed at strengthening BSNL’s coverage and service quality so it can compete more effectively in the domestic telecom market. 

Government Support Since Revival Plan 

BSNL has received large-scale government backing over the past few years. The Centre allocated ₹56,785 crore for its turnaround in FY24 and increased support to ₹82,054 crore in FY25. 

Since 2019, total capital expenditure support provided to BSNL across multiple packages stands at about ₹3.22 trillion. This includes a ₹1.64 lakh crore revival package in 2022 and administrative allotment of 4G and 5G spectrum valued at ₹89,000 crore in 2023. 

Position Against Private Telecom Operators 

BSNL continues to trail private telecom companies such as Reliance Jio, Bharti Airtel and Vodafone Idea in subscriber base, revenues and profitability. The government’s strategy focuses on sustained capital support and network upgrades to improve its competitive position. 

Performance milestones for BSNL are being tracked monthly by the government as part of the revival framework. 

Operational Targets and ARPU Push 

The operator has been given specific growth targets: a 50% increase in mobile services business over the next year, 25–30% growth in enterprise business, and 15–20% expansion in fixed-line services. 

Telecom Minister Jyotiraditya Scindia has also directed BSNL to improve its average revenue per user (ARPU) by expanding its subscriber base and improving customer experience. ARPU is currently ranging from about ₹40 to over ₹175. 

Read More: Government Directs BSNL to Improve Service Quality and to Resolve Power Issues! 

Conclusion 

The FY27 Budget support reinforces the government’s revival push for BSNL, with funding aligned to accelerated 4G rollout and measurable business targets, while early profitability signals suggest gradual operational stabilisation. 

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