Telecom Debt Dilemma: Tackling the Financial Strains

The four major telecom operators in India have amassed a combined debt of Rs 4,09,905 crore by FY 2024. BSNL recorded the lowest debt among them at Rs 23,297 crore. Government initiatives, including revival packages totaling Rs 2.33 lakh crore, have helped reduce BSNL's debt and enhance its profitability.

India's major telecom operators are grappling with substantial debt, amounting to Rs 4,09,905 crore for the financial year 2024. State-owned BSNL reported the least debt among its industry peers, with a liability of Rs 23,297 crore. This information was disclosed in Parliament by Minister of State for Communications Pakka Chandra Sekhar.

BSNL's debt has seen a reduction from Rs 40,400 crore in FY22 to Rs 28,092 crore through a government-backed revival package and financial aid. Sekhar highlighted that an initial package worth Rs 69,000 crore helped lower BSNL/MTNL's operational costs by 2019, followed by a second package of Rs 1.64 lakh crore in 2022.

The government also sanctioned around Rs 89,000 crore for BSNL to receive 4G/5G spectrum, facilitating its transition to profitability since FY 2020-21. These measures focus on capital infusion, debt restructuring, and supporting rural telephony to ensure BSNL's continued growth.

(With inputs from agencies.)