(FE)
The central government has urged the state governments to use state-run telecom operators’ services to ensure data security. According to a report by CNBC TV18, Department of Telecommunications (DoT), in a letter to various state governments, the centre has recommended the use of Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL).
This comes at a time when the government is pushing state-run telecom companies and is announcing initiatives to revive them.
“The Union Cabinet, inter-alia, had approved the mandatory utilisation of capacities of BSNL and MTNL for internet, landline, and leased line requirements by the Central government, in view of the data security needs,” said DoT in a letter as seen by the Economic Times.
“On similar lines, state governments were also requested to utilise the network capacities of BSNL for their telecom requirements,” the letter stated.
On April 8 as well, DoT secretary Neeraj Mittal had requested all departments agencies and PSUs of the state government to use BSNL and MTNL for internet, broadband, landline and leased line requirements.
In 2019, the cabinet had mandated central government, ministries to use BSNL and MTNL for internet, landlines and other services. Since the same year, as part of its revival bet, the government had infused funds worth Rs 3.22 lakh crore in BSNL and MTNL. Besides this, the central government has planned to raise around Rs 1,000 crore in the present financial year to pump more funds into the state-run telcos to reduce debt and improve liquidity.
The central government has announced revival packages for the two telecom operators in 2019, 2022 and 2023.
As of March 31, 2025, MTNL’s total debt stood at Rs 33,000 crore, and BSNL’s liability stood at around Rs 23,297 crore as of November last year.
