Telecom Sector Debt Reaches Rs 4.09 Lakh Crore In FY24; BSNL Records Lowest Debt Among Operators

Vodafone Idea carried the heaviest debt load at Rs 2.07 lakh crore, followed by Bharti Airtel at Rs 1.25 lakh crore and Reliance Jio at Rs 52,740 crore as of March 31, 2024

BSNL's debt has significantly reduced over recent years, falling from Rs 40,400 crore in FY22 to Rs 28,092 crore, aided by a government revival package and financial support.

Source : PTI

The cumulative debt of the country’s four major telecom operators reached Rs 4,09,905 crore in the financial year 2024, with state-run Bharat Sanchar Nigam Limited (BSNL) reporting the lowest debt at Rs 23,297 crore, Parliament was informed. Minister of State for Communications Pemmasani Chandra Sekhar shared these figures in a written reply to the Lok Sabha. According to the data, Vodafone Idea carried the heaviest debt load at Rs 2.07 lakh crore, followed by Bharti Airtel at Rs 1.25 lakh crore and Reliance Jio Infocomm at Rs 52,740 crore as of March 31, 2024.

BSNL's debt has significantly reduced over recent years, falling from Rs 40,400 crore in FY22 to Rs 28,092 crore, aided by a government revival package and financial support.

“In 2019, a Rs 69,000 crore revival package helped reduce the operating costs of BSNL and MTNL. In 2022, another revival package worth Rs 1.64 lakh crore focused on infusing fresh capital, restructuring debt, and providing viability gap funding for rural telephony,” Sekhar stated.

The government has also approved the allocation of 4G/5G spectrum to BSNL, involving a total outlay of around Rs 89,000 crore. “As a result of these measures, BSNL has been generating operating profits since FY 2020-21,” Sekhar added.

Cabinet Waiver Eases Financial Pressure on Telecom Operators

In a separate development, the Cellular Operators Association of India (COAI) hailed the Union Cabinet’s decision to waive bank guarantees for spectrum purchases made before 2022.

“This landmark decision will significantly reduce the financial burden on telecom operators, enhance cash flow, and free up capital for investments in network expansion and technology upgrades,” said SP Kochhar, Director General of COAI.

The move is expected to bolster the rollout of robust telecom networks, benefiting operators including Vodafone Idea, Bharti Airtel, and Reliance Jio, the association noted. The telecom sector remains under scrutiny as operators navigate high debt levels while investing in 5G rollouts and infrastructure expansion.