Cabinet approves Revival package of BSNL (GS Paper 2, Governance)
Why in news?
- To make BSNL financially viable, the Union Cabinet approved the revival package of BSNL amounting to Rs 1.64 Lakh Cr.
- Revival measures approved by the Cabinet focus on infusing fresh capital for upgrading BSNL services, allocating spectrum, de-stressing its balance sheet, and augmenting its fiber network by merging Bharat Broadband Nigam Limited (BBNL) with BSNL.
Upgrading BSNL services:
- Administrative allotment of Spectrum: To improve existing services and provide 4G services, BSNL will be allotted Spectrum in 900/1800 MHz band administratively at the cost of Rs 44,993 Cr through equity infusion. With this spectrum, BSNL will be able to compete in the market and provide high speed data using their vast network including in rural areas.
- Financial support for capex: To promote indigenous technology development, BSNL is in process of deploying Atmanirbhar 4G technology stack. To meet the projected capital expenditure for next 4 years, Government will fund capex of Rs 22,471 Cr. This will be a significant boost to development and deployment of Atmanirbhar 4G stack.
- Viability gap funding for rural wireline operations: Despite the commercial non-viability, BSNL has been providing wireline services in rural/remote areas to meet the social objectives of the Government. Government will provide Rs 13,789 Cr to BSNL as viability gap funding for commercially unviable rural wire-line operations done during 2014-15 to 2019-20.
- Increase in authorized capital: The authorized capital of BSNL will be increased from Rs 40,000 Cr to Rs 1,50,000 Cr in lieu of AGR dues, provision of capex and allotment of spectrum.
De-stressing BSNL balance sheet
- Debt structuring: Government will provide sovereign guarantee to these PSUs for raising long term loan. They will be able to raise long term bonds for an amount of Rs 40,399 Cr. This will help restructuring existing debt and de-stressing the balance sheets.
- Financial support for AGR dues: To further improve the balance sheet, AGR dues of BSNL amounting to Rs 33,404 Cr will be settled by conversion into equity. Government will provide funds to BSNL for settling the AGR/GST dues.
- Re-issue of preference shares: BSNL will re-issue preference share of Rs 7,500 Cr to the Government.
Augmenting BSNL fiber network
Merger of BBNL and BSNL:
- To facilitate wider utilization of infrastructure laid under BharatNet, Bharat Broadband Network Ltd (BBNL) will be merged with BSNL.
- The infrastructure created under BharatNet will continue to be national asset, accessible on a non-discriminatory basis to all the Telecom Service Providers.
Way Forward:
- With these measures, BSNL will be able to improve the quality of existing services, roll out 4G services and become financially viable.
- It is expected that with the implementation of this revival plan, BSNL will turn-around and earn profit in FY 2026-27.
BPRL to develop BM-SEAL-11 project in Brazil
(GS Paper 3, Economy)
Why in news?
- Recently, the Cabinet Committee on Economic Affairs has approved additional investment of USD 1,600 million (about Rs. 12,000 crore) by Bharat PetroResources Ltd. (BPRL), a wholly owned subsidiary of Bharat Petroleum Corporation Limited (BPCL) for development of BM-SEAL-11 Concession Project in Brazil.
The CCEA also approved following:
- To increase in the limit of equity investment by BPCL in BPRL and Authorised Share Capital of the Company from Rs.15,000 crore to Rs.20,000 crore (to be subscribed by BPCL from time to time).
- To authorise increase in the limit of equity investment by BPRL International BV in International BV Brasil Petroleo Limitada, through intermediate WOS, to Rs.15,000 crore from the current limit of Rs.5,000 crore that is an increase of Rs.10,000 crore.
Significance:
This will help in:
- accessing to equity oil to strengthen India’s energy security.
- diversifying India’s crude oil supply and Indian oil companies have expressed interest in sourcing more crude oil from Brazil.
- Strengthening India’s foothold in Brazil, which will further open business avenues in neighbouring Latin American countries.
- Further strengthening the bilateral ties between the countries.
Background:
- BPRL has 40% Participating Interest (PI) in this Concession along with Petrobras, National oil company of Brazil, as the Operator with 60% Participating Interest.
- BPRL has been associated with exploration and development of this project in Brazil since 2008.
Way Forward:
- The start of production from BM-SEAL-11 project is expected from 2026-27.
Rashtriya Khanij Puraskar- National Award to Promote Mining
(Miscellaneous)
Why in news?
- In order to incentivize the States who take initiative in exploration, auction and operationalisation of mineral blocks, Ministry of Mines has instituted a National level award scheme viz., Rashtriya Khanij Puraskar in three categories of minerals.
Details:
- The award money is Rs. 3 cr, Rs. 2 cr, and Rs. 1 cr for 1st, 2nd and 3rd positions respectively in each category.
- Award for the year 2019-20 & 2020-21 have been given during the 6th National Conclave on Mines & Minerals held in July 2022. A total of Rs.18 Cr has been given as award money to different States.
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Incentives:
Further, in order to encourage the States to auction mineral blocks, following incentives are provided by the Ministry of Mines:
- ₹20 lakh to those States where potential mineral blocks are available for auction.
- ₹20 lakh for each successful auction of mineral block conducted by the State Government.
- Reimbursement of 50% of Transaction Advisor fee for conducting auction subject to a maximum of ₹5 Lakh for each block which was put up for auction but could not be successfully auctioned.
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Jupiter Icy Moons Explorer (JUICE) Mission
(GS Paper 3, Science and Tech)
Why in news?
- The Jupiter Icy Moons Explorer (JUICE) mission, being developed by the European Space Agency, will launch in April 2023 on an Ariane-5 rocket from Europe's Spaceport in French Guiana.
- The destination will be the humongous Jupiter system that will be uncovered layer by layer in a series of 35 Jovian moon flybys.
Focus:
- When the Juice mission arrives in this system, it will uncover the secrets that could make Jupiter a potential candidate for long-term exploration and even a target for future interplanetary missions.
Key Highlights:
- The spacecraft, which is equipped with 85 square meter solar wings, will make detailed observations of the giant gas planet and its three large ocean-bearing moons Ganymede, Callisto, and Europa.
- The spacecraft will use remote sensing, geophysical, and in situ instruments to characterise these moons as both planetary objects and possible habitats while also exploring Jupiter’s complex environment in-depth, and studying the wider Jupiter system as an archetype for gas giants across the Universe.
- The Galilean Moons, four large moons of Jupiter Io, Europa, Ganymede, and Callisto, have long been speculated to have conditions that could one day support life. The Juice mission will provide measurements to determine the positions of the Galilean moons with unprecedented accuracy.
- The mission will give insight into energy exchanges between the giant planet and its natural satellites, and between the satellites themselves, providing information on the past evolution of the orbits and even the origin and formation of Jupiter and the moons themselves.
Way Forward:
- While Jupiter remains a big part of the exploration, Juice will also look to deep dive into Ganymede, the largest moon in the Solar System larger than Pluto and Mercury.
- It will find answers to why it is the only Moon to have an intrinsic magnetic field.
