The government told the Lok Sabha that MTNL’s liabilities will reach Rs 40,000 crore in 2025-26. The company has assets worth Rs 50,000 crore. The government has taken several fiscal measures, including SGB and VRS, which has helped MTNL remain EBITDA-positive from 2020-21.
State-owned telecom company Mahanagar Telephone Nigam Limited (MTNL) has liabilities rising to Rs 40,008.52 crore in 2025-26 and the company has non-core assets worth about Rs 50,000 crore at market value. The government gave this information in the Lok Sabha on Tuesday.
In a written reply, Union Communications Minister Jyotiraditya Scindia said the government has taken various financial and administrative measures for MTNL. He said Mahanagar Telephone Nigam Limited (MTNL), which was incorporated in 1986 to provide telecommunication services in Delhi and Mumbai, came under severe financial and competitive stress.
The government took these steps
He said, “The government has taken various financial and administrative measures for MTNL which, inter alia, include restructuring of MTNL’s high cost debt by raising Sovereign Guarantee Bond (SGB) of Rs 24,071 crore, financing Voluntary Retirement Scheme (VRS) of MTNL employees through budgetary support of Rs 4,327 crore, loan to MTNL for SGB interest payment. Financial assistance of Rs 3,657.05 crore includes transfer of operational activities of MTNL to BSNL through a service agreement and monetization of MTNL’s assets for payment of liabilities of MTNL.”
effect of government measures
The minister said Sovereign Guarantee Bonds (SGBs) worth Rs 24,071 crore have been raised and Rs 4,327 crore have been approved and issued for the VRS scheme. He said, “As a result of these measures, MTNL remains EBITDA-positive from FY 2020-21, with steady improvement in EBITDA from FY 2023-24 (from Rs 43 crore in FY 2023-24 to Rs 195 crore in FY 2024-25 and Rs 437 crore in FY 2025-26). crore rupees).”
Liabilities have increased continuously
According to data provided by the government, the company’s total liabilities have steadily increased over the last five years, from Rs 30,960.09 crore in 2021-22 to Rs 32,477.54 crore in 2022-23, Rs 34,340 crore in 2023-24, Rs 37,119.94 crore in 2024-25 and Rs 40,008.52 crore in 2025-26.
Scindia said the government is not considering implementing any new restructuring plan for MTNL in the near future. (ANI)
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