Government Intervenes to Aid MTNL in Avoiding Debt Crisis

The government has stepped in to assist MTNL in averting a financial crisis by making a Rs 92 crore payment towards bond dues. An additional Rs 64 crore will be paid in the coming days to settle further interest obligations. This intervention provides crucial relief for the debt-ridden telecom corporation.

The government has made a critical intervention, allocating Rs 92 crore towards bond dues for Mahanagar Telephone Nigam Ltd (MTNL), according to a government source. Additional Rs 64 crore is expected to be paid soon for upcoming interest obligations due in August.

This financial support is pivotal, preventing a potential crisis for MTNL, which has struggled with its debt obligations. Last week, the heavily indebted telecom firm disclosed its inability to meet interest payments to certain bondholders due to a lack of funds.

Government sources indicated that Rs 92 crore is being deposited in an escrow account to cover bond interest dues, with another Rs 64 crore being planned for later this month. The second semi-annual interest of 7.59% on specific bonds is due on July 20, 2024.