BSNL’s face will change, government opens treasury for telecom sector, allocation of Rs 1.28 lakh crore
The government has proposed an allocation of Rs 1.28 lakh crore for telecom projects and public sector companies under the Telecom Ministry. Most of this amount has been earmarked for the public sector Bharat Sanchar Nigam Limited (BSNL). Of the total proposed allocation, over Rs 1 lakh crore is for BSNL and MTNL related expenses, which also includes an investment of Rs 82,916 crore for technology upgradation and restructuring in BSNL. According to the budget, “The total net allocation for this demand in Budget Estimates 2024-25 is Rs 1,28,915.43 crore (Rs 1,11,915.43 crore and Rs 17,000 crore). “The additional provision of Rs 17,000 crore is met from the balance available under the ‘Universal Service Obligation Fund’ and will be used for schemes such as compensation to telecom service providers, BharatNet and research and development.”
Rs 17,510 crore for pension benefits
The Budget proposes to allocate Rs 17,510 crore for pension benefits of Department of Telecommunications employees, including those of BSNL and Mahanagar Telephone Nigam Limited (MTNL). The government has proposed to allocate Rs 3,668.97 crore for repayment of principal amount of MTNL bonds. In the budget, a provision of Rs 34.46 crore has been made for technology development and investment promotion, Rs 70 crore for Champion Service Sector Scheme and Rs 1,806.34 crore for Production Linked Incentive (PLI) Scheme.
Import duty increased here
Apart from the allocation, the government has proposed to increase the import duty on motherboards (printed circuit boards) by five per cent in the Union Budget 2024-25 to boost domestic telecom equipment manufacturing. Finance Minister Nirmala Sitharaman said, “To encourage domestic manufacturing, I propose to increase the BCD (Basic Customs Duty) on PCBA (Printed Circuit Board Assembly) of specified telecom equipment from 10 per cent to 15 per cent.” The increase in basic customs duty for telecom PCB manufacturing comes with exemption to critical minerals used in manufacturing of communication equipment.
discount available here
The Finance Minister has proposed to completely exempt 25 minerals such as lithium, copper, cobalt and rare earth elements from customs duty. These minerals are important for sectors like nuclear energy, renewable energy, space, defence, telecommunications and high-tech electronics. Basic customs duty on two of these will be reduced. “This will promote processing and refining of such minerals and help ensure their availability for these strategic and important sectors,” Sitharaman said. Paritosh Prajapati, Chief Executive Officer (CEO), GX Group, said, “The increased BCD on PCB assembly for telecom equipment supports local manufacturers and reduces costs for telecom OEMs (Original Equipment Manufacturers). This will invigorate the industry with new energy and confidence.” GX Group Telecom is one of the beneficiaries of the PLI scheme.
