Cabinet clears Rs 1.64 lakh cr BSNL revival package

New Delhi, July 27: The Union Cabinet on Wednesday approved a Rs 1.64 lakh crore package for the revival of state-owned telecom firm BSNL, Telecom Minister Ashwini Vaishnaw said.

The package has three elements -- to improve services, de-stress balance sheet and expansion of fibre network.

Briefing reporters on the decision taken by the Union Cabinet, he said the government will make administrative allocation of spectrum BSNL needs to offer 4G services.

To de-stress the balance sheet, Rs 33,000 crore statutory dues will be converted into equity and a similar amount of bank loans will be repaid through the issue of low-interest bonds.

Also, BBNL will be merged with BSNL, he added.