MTNL seeks Rs 1,151.65 crore for sovereign guarantee bonds interest this fiscal

New Delhi: Debt-ridden state-run telecom firm Mahanagar Telephone Nigam Limited (MTNL) has sought Rs 1,151.65 crore for payment of interest arising out of sovereign guarantee bonds in the current fiscal, Parliament was informed on Thursday.

Minister of State for Communications Pemmasani Chandra Sekhar in a written reply to the Rajya Sabha said the government has in fact taken various steps for revival of MTNL and BSNL in 2019 and 2022 that include revival package to both companies.

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"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 replying to a question on demands of funds by MTNL from the government to pay interests on debt obligations, details of the demand and the reasons for the state-owned telecom company MTNL making losses.

"MNTL 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 replying to a question on demands of funds by MTNL from the government to pay interests on debt obligations, details of the demand and the reasons for the state-owned telecom company MTNL making losses.

He said the government allocated Rs 69,000 crore in the first revival package in 2019 to BSNL and MTNL that brought down operating costs.

"In 2022, revival package amounting to around Rs 1.64 lakh crore was given for measures such as infusing fresh capital, restructuring debt and meeting viability gap," Sekhar said.

The Rs 1.64 lakh crore revival package in 2022 was approved for upgrading BSNL services, allocating spectrum, de-stressing its balance sheet, and augmenting its fibre network by merging Bharat Broadband Nigam Ltd (BBNL) with BSNL.

Separately, the government in the Budget has proposed to allocate Rs 3,668.97 crore for the payment of the principal amount of MTNL bonds.

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