The Central government has put forward a substantial financial proposal in the Union Budget for the fiscal year 2026-2027, earmarking a significant sum of ₹28,473 crore for the state-run telecommunications giant, Bharat Sanchar Nigam Limited (BSNL). This allocation marks a dramatic increase of ₹21,588 crore compared to the previous fiscal year, underscoring the government's intensified focus on bolstering the public sector telecom operator.
Budgetary Boost for BSNL and Telecom Sector
In the revised estimates for FY2025-2026, BSNL had received a comparatively modest allocation of ₹6,885 crore. The initial proposal during the Budget 2025 presentation was set at a higher ₹33,757 crore, but the current figure for 2026-27 reflects a strategic recalibration aimed at strengthening the company's operational and capital capabilities. Concurrently, the finance ministry has proposed to elevate the overall outlay for the telecom ministry to an impressive ₹73,990 crore. This surge is primarily attributed to a substantial capital infusion directed towards BSNL, highlighting the government's commitment to revitalizing the telecom infrastructure.
Minister Scindia Elaborates on Allocation Details
Telecom Minister Jyotiraditya Scindia, in a statement to news agency PTI, detailed the rationale behind the increased allocations. He explained that the enhanced funding is designated for various critical projects, including the ambitious BharatNet initiative, which aims to expand rural broadband connectivity. Additionally, the capital requirements of BSNL are being addressed, covering essential aspects such as spectrum costs, network rollout, and internal operational needs. Scindia emphasized that the telecom sector has witnessed a healthy growth in allocation, with the revised estimate from last year standing at ₹53,000 crore, which has now escalated to approximately ₹73,000 crore—a notable increase of around 40 per cent.
Strategic Focus on BSNL's Resurgence
When questioned about the specific emphasis on BSNL, Minister Scindia articulated the government's vision to fortify the company progressively. He highlighted positive indicators, noting that BSNL's average revenue per user (ARPU) has grown by nearly 9 per cent, from ₹90 to approximately ₹99, with aspirations to soon breach the three-digit mark. Scindia further elaborated that revenue growth has been observed across all three verticals of the company, necessitating this injection of capital expenditure (CAPEX) alongside internal cash flows to propel BSNL on a path of resurgence and competitiveness in the telecom market.
Comprehensive Funding for Diverse Initiatives
The proposed budget also encompasses funds for the rural broadband project BharatNet, with allocations reaching ₹1,39,000 crore. Moreover, significant attention has been given to regional development, particularly in the North East Region. The revised estimate for this area has seen a 50 per cent jump to ₹6,800 crore, reflecting a concerted effort to enhance infrastructure and connectivity in the region. Scindia pointed out that the budget prioritizes multiple facets, from urbanization initiatives like the deployment of 4,000 e-buses to the development of five Buddhist circuits across six states in the Northeast, alongside substantial investments in health and education sectors.
In summary, the Union Budget 2026-27 demonstrates a robust financial commitment to the telecom sector, with BSNL at the forefront of this strategic push. The increased allocations are poised to support expansive projects, drive technological advancements, and foster regional development, aligning with the government's broader objectives of digital inclusion and infrastructure enhancement.
