Debt-ridden state-run telecom firm MTNL has requested Rs 1,151.65 crore to cover the interest payments on sovereign guarantee bonds for the current fiscal year, Parliament was informed on this.
In a written reply to the Rajya Sabha, Minister of State for Communications Pemmasani Chandra Sekhar stated that the government has implemented several measures for the revival of MTNL and BSNL in 2019 and 2022, including revival packages for both companies.
“Mahanagar Telephone Nigam Limited (MTNL) has sought Rs 1,151.65 crore to meet the payment of interest on Sovereign Guarantee Bonds for Financial Year 2024-25,” Sekhar said. The minister was responding to a query about MTNL’s request for funds to pay interest on its debt obligations, the details of the demand, and the reasons for the state-owned telecom company’s losses.
Sekhar noted that the government allocated Rs 69,000 crore in the first revival package in 2019 to BSNL and MTNL, which helped reduce operating costs. “In 2022, a revival package amounting to around Rs 1.64 lakh crore was provided for measures such as infusing fresh capital, restructuring debt, and addressing viability gaps,” Sekhar said.
The Rs 1.64 lakh crore revival package in 2022 was approved to upgrade BSNL services, allocate spectrum, relieve its balance sheet stress, and enhance its fibre network by merging Bharat Broadband Nigam Ltd (BBNL) with BSNL. Additionally, the government proposed in the Budget to allocate Rs 3,668.97 crore for the repayment of the principal amount of MTNL bonds.
