Union Finance Minister Nirmala Sitharaman has proposed a budget allocation of ₹1.28 lakh crore for telecom projects and public sector firms under the Telecom Ministry, with a significant portion earmarked for state-owned BSNL, according to the Budget 2024-25 document.
Out of the total proposed allocation, over ₹1 lakh crore is designated for BSNL and MTNL-related expenses. This includes ₹82,916 crore for technology upgrades and restructuring at BSNL.
“The total net allocation for this demand in the Budget Estimate (BE) 2024-25 is ₹1,28,915.43 crore (₹1,11,915.43 crore plus ₹17,000 crore). The additional provision of ₹17,000 crore is sourced from the Universal Service Obligation Fund balances and will be used for schemes such as Compensation to Telecom Service Providers, BharatNet, and Research and Development,” the Budget document states.
Boom💥💥
— Aditya Mehta 📈 (@aditya942000) July 23, 2024
BSNL has been allocated a lion's share of ₹82,916 crore out of the total ₹1.28 lakh crore earmarked for the telecom sector
Healthy BSNL = Healthy Tejas Networks
Tejas mgt. also pointed out additional order for 4g sites from BSNLhttps://t.co/lcXSGsKD6O
Union Budget 2024 – PLI for Telecom Equipment' increased by 1000 crs+
— Sandeep (@_Sandeep09) July 23, 2024
Bharatnet allocation also increased by 35% to Rs 8500 crs
Good for overall sector#TEJASNET pic.twitter.com/sH3y9oq888
In addition, the Union Budget 2024 includes ₹17,510 crore for pensionary benefits for Department of Telecommunications employees, including those absorbed into BSNL and MTNL from April 1, 2014.
Other allocations in the Budget include ₹3,668.97 crore for the repayment of the principal amount of MTNL bonds, ₹34.46 crore for the Technology Development and Investment Promotion, ₹70 crore for the Champion Service Sector Scheme, and ₹1,806.34 crore for the Production Linked Incentive Scheme.
Additionally, the government has proposed to increase the import duty on motherboards, technically known as printed circuit boards, by 5% in the Union Budget 2024-25 to boost domestic telecom equipment manufacturing.
“To incentivize domestic manufacturing, I propose to increase the BCD (Basic Customs Duty) from 10% to 15% on PCBA (printed circuit board assembly) of specified telecom equipment,” Finance Minister Nirmala Sitharaman said.
