Union Budget 2026 to infuse ₹28,473 crore equity into BSNL in FY27

The Union Budget has proposed a ₹28,473 crore equity infusion into BSNL for FY27, alongside funding for new 4G sites, viability gap support and employee VRS, signalling calibrated backing as operation The telecom operator has been tasked with increasing its mobile services business by 50 per cent over the next year, raising enterprise business by 25–30 per cent and expanding its fixed-line business by 15–20 per cent | (File photo: Reuters) BS Reporter New Delhi Listen to This Article The Centre will infuse ₹28,473 crore as equity into state-run telecom services provider Bharat Sanchar Nigam Limited (BSNL), according to allocations spelt out in the Union Budget. The equity infusion for FY27 is about 33 per cent lower than the ₹33,757 crore earmarked in the Budget Estimates for FY26, which has since been revised downwards to ₹6,885 crore in the current financial year ending March 31, 2026. With the addition of ₹1,200 crore as viability gap funding and ₹476 crore for voluntary retirement of employees at the public sector undertaking, the total allocation for FY27 comes to ₹30,188 crore. Why is the FY27 allocation linked to BSNL’s network expansion plans? The effectively increased allocation comes on the back of an additional 23,000 4G sites that the state-run carrier is expected to set up in FY27, in addition to the 100,000 4G sites that the country’s fourth-largest telecom operator is rolling out as part of its revival plan to compete in the Indian market. How much support has BSNL received in recent years? The Centre had allocated ₹56,785 crore for BSNL’s turnaround in FY24, before ramping it up to ₹82,054 crore in FY25. The government has provided capital expenditure support of ₹3.22 trillion to BSNL in several tranches since 2019, including ₹1.64 lakh crore in 2022 and the allotment of 4G and 5G spectrum worth ₹89,000 crore in 2023. Also Read: Budget 2026 highlights: A look at key numbers announced by FM Sitharaman Where does BSNL stand vis-à-vis private telecom players? The carrier continues to lag industry peers Reliance Jio, Bharti Airtel and Vodafone Idea in terms of subscriber base, profitability and revenue. However, it aims to improve its competitiveness through sustained government support. Enhancing BSNL’s network capacity is also expected to help it achieve growth targets set by the government, which are monitored on a monthly basis. What performance targets has the government set for BSNL? The telecom operator has been tasked with increasing its mobile services business by 50 per cent over the next year, raising enterprise business by 25–30 per cent and expanding its fixed-line business by 15–20 per cent. Telecom Minister Jyotiraditya Scindia has also asked BSNL to improve its average revenue per user (ARPU), a key quarterly performance metric, by boosting customer satisfaction and expanding its subscriber base. BSNL’s ARPU currently varies widely across circles, ranging from around ₹40 in some regions to over ₹175 in others. Does the lower allocation indicate improved financial health? Telecom sector experts noted that the lower allocation compared to previous years could indicate improving operational metrics at the carrier. BSNL posted a net profit of ₹262 crore in the July–September quarter and ₹280 crore in the October–December quarter of 2024 — its first back-to-back profitable quarters in 18 years. Don't miss the most important news and views of the day. Get them on our Telegram channel First Published: Feb 01 2026 | 4:13 PM IST