State-run telecom company MTNL has raised Rs 500 crore from various banks to repay the debts it had amassed while paying for third-generation (3G) and Broadband Wireless Access (BWA) spectrum licenses, last year.
“Out of the total loan amount of Rs 1,500 crore, we have raised Rs 500 crore from various banks and for the rest of the amount, we are still in talks with them (banks),” said MTNL chairman and managing director Kuldeep Singh.
In July, MTNL had invited expression of interest (EoI) from banks for long-term loans of Rs 1,500 crore, with a floating interest rate for a tenure of seven years. The loan will be raised in tranches, without any penalty and interest.
MTNL had taken a short-term loan of Rs 7,000 crore last year for acquiring spectrum for the Delhi and Mumbai circles. It repaid Rs 533 crore, while the rest (Rs 4967 crore) was converted into long-term debt.
Delhi and Mumbai were the most expensive circles for 3G — the spectrum price for Delhi was Rs 3,317 crore and for Mumbai it was Rs 3,247 crore, against the reserve price of Rs 320 crore each for the metros. Similarly for BWA, Delhi and Mumbai saw the highest bids at Rs 2,241 crore and Rs 2,293 crore, respectively.
In another development, MTNL has joined hands with Shemaroo Entertainment to launch 2G and 3G value-added services across Delhi and Mumbai.
