The Department of Telecommunications (DoT) has again approached the finance ministry seeking additional funds to manage the liabilities of Mahanagar Telephone Nigam Limited (MTNL). This move follows the finance ministry’s earlier rejection of a proposal for a partial debt waiver.
A senior government official noted that the finance ministry has not yet responded to the renewed proposal. “The DoT should ideally leverage MTNL’s assets and come up with a clearer execution plan,” the official said.
MTNL’s total outstanding dues to public sector banks now stand at ₹8,415.55 crore. Despite owning several prime real estate assets in Delhi and Mumbai, the company has struggled with effective monetisation.
As per a written reply in the Lok Sabha by Minister of State for Communications and Rural Development Pemmasani Chandra Sekhar, only land and building assets that are no longer essential for operations are being monetised. From 2019 to January 2025, MTNL earned ₹2,134.61 crore from non-core assets and ₹258.25 crore from core assets like towers and fibre networks.
Read More: BSNL, MTNL to Monetise Land Assets Worth ₹1,000 Crore for Financial Relief
In August 2024, the government disclosed that MTNL had requested ₹1,151.65 crore to meet its interest obligations on sovereign guarantee bonds for FY25. Despite this, no clear commitment from the finance ministry has been made so far.
A number of public sector banks have categorised MTNL’s loans as non-performing assets due to defaults. The total exposure of seven such banks includes:
Union Bank of India was the first to mark the loan as an NPA in August 2024, with Indian Overseas Bank following in February this year.
MTNL continues to struggle operationally. For the third quarter of FY25, the company posted a net loss of ₹836 crore, showing little improvement from the ₹839 crore loss in the same period the previous year.
Revenue also declined by 11.6% year on year to ₹170 crore, compared to ₹192.2 crore in Q3 of FY24. The company’s Ebitda loss widened to ₹128.1 crore from ₹125.7 crore, reflecting persistent challenges in sustaining operations in a competitive telecom landscape.
The situation for MTNL remains precarious. While the DoT is making renewed efforts to secure financial support, the effectiveness of these measures will depend on a well-defined plan to monetise existing assets and address operational inefficiencies. The finance ministry’s decision on the latest funding request will be crucial in determining the company’s financial trajectory going forward.
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Published on: May 22, 2025, 2:28 PM IST
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