MTNL defaulted on loan payment
Has MTNL (Mahanagar Telecom Nigam Limited), the government company that once ruled the roost in providing telecom services in cities like Delhi and Mumbai, now become a ‘white elephant’ for the government? These questions arise because the company is already suffering huge losses and has now also defaulted on the loan installment.
Public sector telecom company MTNL has defaulted on a total loan of Rs 5,726.29 crore. The company says this includes the total principal amount of Rs 5,492 crore taken from different banks and interest of Rs 234.28 crore.
Debt burden of over Rs 32,000 crore
MTNL has reported that its total financial borrowing has now increased to Rs 32,097.28 crore. This is 40 times more than its annual revenue of Rs 798 crore. This means that the company cannot pay this loan even with its income.
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The largest loan provider of MTNL is ‘Union Bank of India’. According to MTNL data, the company has not repaid the loan of Rs 3,480.85 crore to Union Bank of India. At the same time, a total loan of Rs 1,039.77 crore from Bank of India remains outstanding. In this, only the principal amount of Rs 999.54 crore remains outstanding. Apart from this, MTNL has also defaulted on payments made to Punjab National Bank, State Bank of India, UCO Bank and Punjab and Sindh Bank.
The company’s business will be available on BSNL.
Meanwhile, Union Telecom Minister Jyotiraditya Scindia says there is no insecurity regarding MTNL’s debt as it is a government undertaking. Therefore, your loan is also guaranteed by the government. However, MTNL’s business will soon be shifted to the government company BSNL, which provides its services across the country.
Government company BSNL recently upgraded its services with the launch of 4G service. At the same time, its operating profit has also begun to increase. Apart from this, the company has also increased its customer base and will soon be able to start its 5G service.
