Govt not considering fresh restructuring plan for MTNL, says Scindia

The Centre says earlier financial and administrative measures have helped MTNL remain Ebitda-positive since FY21, despite mounting liabilities and declining income

The government is not considering implementing any new restructuring plan for Mahanagar Telephone Nigam Limited (MTNL), Union Minister for Communications Jyotiraditya Scindia said in a written reply to Lok Sabha on Wednesday.

 

The public-sector telecom services provider as of March this year, has liabilities worth ₹40,000 crore up from ₹30,960 crore in 2021-22 (FY22), while losses have risen from ₹2616 crore in 2021-22 to ₹3101 crore in 2025-26 (FY26). Total income dropped from ₹1696 crore to ₹1469 crore in the same period.

 

“Government has undertaken various financial and administrative measures for MTNL, including restructuring of high cost debt of MTNL through raising of Sovereign Guarantee Bonds (SGB) of ₹24,071 crore, funding of Voluntary Retirement Scheme (VRS) of MTNL employees through budgetary support of ₹4,327 crore, financial support of ₹3,657.05 crore to MTNL for servicing of SGB interest payments, transfer of operational activities of MTNL to BSNL through a service agreement, and monetisation of MTNL assets for payment of MTNL’s liabilities,” the minister said. The transfer of MTNL’s operational activities to Bharat Sanchar Nigam Limited (BSNL) was done in 2024.

   

“As a result of these measures, MTNL has remained earnings before interest, taxes, depreciation and amortisation (Ebitda)-positive since 2020-21, with Ebitda improving steadily since 2023-24 (₹43 crore in 2023-24, ₹195 crore in 2024-25, and ₹437 crore in 2025-26),” he added.

 

The ministry added that against total liabilities of ₹40,000 crore, MTNL holds ₹50,000 crore of non-core asset in market value terms. According to its financial statement, the telecom firm holds assets worth ₹10,033 crore as of FY26 end, lower than ₹12,303 crore in FY22.