The government has stepped in to make a Rs 92 crore payment towards bond dues of MTNL, a government source said, adding that another Rs 64 crore would also be paid in coming days towards interest obligations that are slated to become due in August. The helping hand from the government is significant as it averts a crisis-like situation for the telecom corporation which has been teetering on the brink with regard to its debt obligations, particularly in this case government-guaranteed bonds. Last week, the debt-laden firm had expressed its inability to make interest payments to certain bondholders due to paucity of funds. The government sources said Rs 92 crore is being deposited in an escrow account for payment towards interest on bond dues. Another Rs 64 crore would be paid later this month to clear interest dues that slated to come up in August, sources said. The second semi-annual interest (7.59 per cent) on certain bonds is falling due on July 20, 2024. Amid mounting financial
Reports claim that the government was considering the option of handing over operations of MTNL to BSNL through an agreement, instead of pursuing a merger route.
The government will pay the bond dues of ailing Mahanagar Telephone Nigam Ltd (MTNL), a DoT source said assuring that there will be no default, and that the amount will be paid before the due date of July 20. The move assumes significance as it would avert a looming crisis for the telecom corporation which is being seen teetering on the brink with regard to its debt obligations that are becoming due. All eyes are on MTNL, ever since the debt-laden firm last week expressed its inability to make interest payments to certain bondholders due to paucity of funds. Telecom Department sources said that the government will step in and pay the said dues, and asserted that there won't be any default on the same. In this particular case, where the second semi-annual interest (7.59 per cent) on certain bonds is falling due on July 20, 2024, DoT sources said that "the dues will be paid before the date". Amid mounting financial woes, MTNL last week informed in a statutory filing that it is unable