MTNL submits revival plan to DoT, to invest Rs 805 cr as capex in 2015-16

Official says technically MTNL is not a sick company as it posted profits of Rs 7,821 cr in 2013-14

State-run Mahanagar Telephone Nigam (MTNL), now in the list of ‘sick’ public sector units (PSUs), has sent a revival proposal to the department of telecommunications (DoT).

“It is under DoT consideration,” a senior official from MTNL told Business Standard.  The official would not disclose the details.

Technically, MTNL is not a sick company, as it posted a profit of Rs 7,821 crore in 2013-14, the official said. However, the profit was on account of exceptional items or writeback of provisions on pensionary liabilities and spectrum amortisation costs of Rs 11,621 crore. It has been making operational losses for three years.

The PSU also plans to raise Rs 500 crore through a short-term loan in the next financial year, for expansion. Overall, an amount of Rs 805 crore will go towards capital expenditure — for network upgradation and enhancing data services — in 2015-16.

On Tuesday, Minister for Heavy Industries Anant Geete told Parliament Air India and MTNL had been put in the list of sick central public sector enterprises. There were 65 units in the list as of end-March 2014.