Government Increases Telecom Funding: Major Boost for BSNL and Local Manufacturing

The government has proposed a budget allocation of Rs 1.28 lakh crore for telecom projects and public sector firms, primarily benefiting BSNL with major investments in technology upgradation and restructuring. The increased budget also includes provisions for pension benefits, the Production Linked Incentive Scheme, and a rise in import duty on PCBs to support domestic telecom gear manufacturing.

The government has put forward a significant allocation of Rs 1.28 lakh crore for telecom projects and public sector companies under the telecom ministry, with a notable portion earmarked for the state-run Bharat Sanchar Nigam Ltd. (BSNL).

More than Rs 1 lakh crore of the proposed funding is directed towards BSNL and MTNL, with Rs 82,916 crore designated for technology upgrades and restructuring within BSNL. The total net allocation for this demand in the Budget Estimate (BE) 2024-25 stands at Rs 1,28,915.43 crore, including an additional Rs 17,000 crore drawn from the Universal Service Obligation Fund for specific schemes.

The budget also proposes Rs 17,510 crore for pension benefits of Department of Telecommunications employees, Rs 3,668.97 crore for MTNL bond payments, and several allocations for various schemes aimed at bolstering the telecom sector. To encourage domestic manufacturing, the government intends to raise the Basic Customs Duty (BCD) from 10% to 15% on printed circuit board assemblies (PCBA) for telecom equipment, while exempting critical minerals from customs duties.

(With inputs from agencies.)