Bharat Sanchar Nigam Limited (BSNL), the state-run Indian telecom operator, reported the lowest debt among telecom operators in FY24. Despite lacking 4G services, BSNL has consistently achieved operating profits in recent years and has been gradually narrowing its net losses. In a written response to the Rajya Sabha, Minister of State for Communications Pemmasani Chandra Sekhar noted that BSNL’s debt decreased to Rs 23,297 crore in FY24, down from Rs 28,092 crore in FY23 and Rs 40,400 crore in FY22.
For comparison, Bharti Airtel’s debt stood at Rs 1.26 lakh crore, Vodafone Idea’s (Vi) at Rs 2.07 lakh crore, and Jio Infocomm’s at Rs 52,740 crore. BSNL has benefited significantly from government relief packages, receiving three such packages between FY20 and FY24. The first package, amounting to Rs 69,000 crore, came in 2019, followed by Rs 1.64 lakh crore in 2022, and Rs 89,000 crore in 2023. These packages included the allocation of 4G and 5G spectrum to BSNL.
Additionally, BSNL has been directed to raise funds by monetizing its land and building assets. The Indian government anticipates that BSNL will become profitable by FY27. The company’s net losses have significantly decreased from Rs 15,500 crore in FY19 to Rs 5,371 crore in FY24, with its EBITDA (earnings before interest, taxes, depreciation, and amortization) showing consistent growth. BSNL aims for its 4G network rollout to be a key factor in achieving profitability in the medium term.
