BSNL’s ₹77,000 crore expansion plan aims for five-year turnaround with 5G deployment and cost discipline

Bharat Sanchar Nigam Ltd unveils a ₹77,000 crore five-year capital plan to expand 4G infrastructure and introduce 5G, while aiming for operational break-even by FY29 amid calls for tighter expenditure control and infrastructure sharing.

Bharat Sanchar Nigam Ltd has put forward a ₹77,000 crore capital spending plan over five years as it seeks to add 200,000 more 4G sites and launch 5G in selected areas, with the state-run telecom operator targeting operational break-even by FY29. According to Business Standard, the Department of Telecommunications told a parliamentary committee that BSNL is already on a path towards financial turnaround after taking cost-cutting steps, and that further capital support would accelerate the process.

The committee, however, urged the department and BSNL to go further and draw up a tighter programme of expenditure rationalisation, with clear targets for cost control, revenue growth and capital efficiency. It also pressed for annual milestones to cut losses and improve operating margins, reflecting concern that the company’s own forecasts still point to rising expenditure and wider losses in FY27 even as revenue grows.

Business Standard reported that BSNL expects total expenditure to climb to ₹34,853 crore in FY27 from ₹30,202 crore in FY26, while losses are projected to widen to ₹5,946 crore from ₹4,643 crore. Revenue, meanwhile, is forecast to rise to ₹26,407 crore from ₹23,259 crore over the same period. That tension between growth and rising costs underlines why the committee is pushing for a more disciplined turnaround plan.

The wider revival effort is already under way. BSNL recently reported a 10% rise in operational revenue in the first quarter of FY27, helped by stronger enterprise business and a higher average revenue per user, while it continues to roll out thousands of additional 4G sites. The Union Budget 2026 also set aside ₹28,473 crore for the company in FY27, supporting new 4G sites, viability gap funding and voluntary retirement schemes. The committee additionally urged the government to consider infrastructure sharing between BSNL and Vodafone Idea, arguing that joint use of towers, fibre, spectrum and other assets could cut duplication, lower costs and speed up 5G deployment.

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