The union cabinet Saturday approved a proposal of the department of telecommunications to provide financial support to Mahanagar Telephone Nigam Limited (MTNL), an official statement said here.
The MTNL needs financial support due to its liability arising from levy of minimum alternate tax (MAT).
"The objective of this approval is to provide one time financial support to MTNL due to reimbursement of MAT during the financial year 2014-15 through requisite budgetary provisions," the statement said.
"On account of recent decisions of the government which includes payment of pension to erstwhile government employees absorbed in MTNL and who opted for combined service pension and financial support on surrender of Broadband Wireless Access spectrum, MTNL has earned a book profit of Rs.2,348.49 crore for the FY 2013-14, resulting in a minimum alternate tax liability of Rs.492.26 crore," it added.
The decision will help MTNL arrange finances to meet its basic financial commitments like operations and maintenance of its telecom network.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app