MTNL Seeks Rs 1,151.65 Crore to Cover Interest Payments Under Sovereign Guarantee Bonds

MTNL has requested Rs 1,151.65 crore to pay interest on sovereign guarantee bonds for FY 2024-25. This was disclosed by the Minister of State for Communications in a reply to the Rajya Sabha. Revival packages were introduced in 2019 and 2022 to help sustain MTNL and BSNL.

In a financial move, the debt-ridden state-operated telecom firm MTNL has requested Rs 1,151.65 crore for interest payments arising from sovereign guarantee bonds this fiscal year, Parliament was informed Thursday.

Minister of State for Communications Pemmasani Chandra Sekhar, in a written response to the Rajya Sabha, stated that the government had implemented various revival measures for both MTNL and BSNL in 2019 and 2022, including revitalization packages.

'Mahanagar Telephone Nigam Limited (MTNL) has requested Rs 1,151.65 crore to manage interest payments on Sovereign Guarantee Bonds for Financial Year 2024-25,' Sekhar affirmed.

Responding to queries on MTNL's funding demands for interest payments and the reasons for its financial losses, the minister said that Rs 69,000 crore had been allocated in the 2019 revival package for BSNL and MTNL to lower operational costs.

He added that in 2022, a comprehensive revival package amounting to around Rs 1.64 lakh crore was sanctioned for infusing fresh capital, debt restructuring, and ensuring operational viability.

The Rs 1.64 lakh crore package will also address BSNL's service upgrades, spectrum allocation, and balance sheet de-stressing, along with augmenting its fiber network by merging Bharat Broadband Nigam Ltd (BBNL) with BSNL. Separately, the government proposed Rs 3,668.97 crore in the Budget for the principal repayment of MTNL bonds.

(With inputs from agencies.)