The Cabinet on Wednesday cleared compensation of Rs 1,250 crore for BSNL to support rural landline connections installed before April 1, 2002. The subsidy will be given to the state-run firm after an amendment in the Indian Telegraph Rules (ITRs), 1951, the government said in a statement.
“The Union Cabinet … has approved the proposal to extend subsidy support of Rs. 1,250 crore to Bharat Sanchar Nigam Limited (BSNL) from Universal Service Obligation Fund (USOF), as compensation for deficit incurred by BSNL in operating the Rural Wire-line connections installed prior to 1st April, 2002. The eligible rural wire-line connections installed prior to 1.4.2002 is 32.32 lakh, across India as on 31.3.2014,” the government said. The operator had asked the government to provide Rs 2,000 crore to support rural wireline connections.