BSNL and MTNL have a deep history of its debt being refinanced by the government. In this article, we will look at the money that both these companies owe to the telecommunication department.
As of the latest data, MTNL’s overall debt amounts to Rs 33,568 crore, comprising Rs 8,346 crore in loans from banks, Rs 24,071 crore through Sovereign Guarantee Bonds, and Rs 1,151 crore borrowed from the Department of Telecommunications (DoT) to manage interest payments on those bonds. However, on Thursday, the Department of Telecom has once again reached out to the government for the repayment of MTNL’s dues.
BSNL’s debt stood at around Rs 23,297 crore as of November 2024. However, the Department of Technology had always stood with BSNL. For example, in 2023 the telecom department sought Rs 33,111 crore for BSNL’s AGR dues which was a component of the company’s revival package. Also, the government announced several revival packages for the company to help with its financial intricacies.
Recent Development
Modi- Government intends to raise Rs 1,000 crore in 2025-26 by monetising land owned by BSNL and MTNL to ease their debt burden and improve their liquidity. However, the sale or lease of such assets, as identified by the Department of Public Enterprises, may get delayed since land is a state subject.
Two or three plots of land are considered by BSNL, and both companies together are estimated to raise Rs 1,000 crore. MTNL has defaulted on loans to the tune of Rs 8,346 crore, and the total dues are Rs 33,000 crore.
Written by Satyajeet Mukherjee
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