MTNL Seeks Rs 1,151.65 Cr for Sovereign Guarantee Bonds Interest
By Rediff Money Desk, New Delhi Aug 01, 2024 16:26
MTNL has requested Rs 1,151.65 crore from the Indian government to cover interest payments on sovereign guarantee bonds for the current fiscal year. The government has allocated Rs 69,000 crore in 2019 and Rs 1.64 lakh crore in 2022 to revive MTNL and BSNL.
New Delhi, Aug 1 (PTI) Debt-ridden state-run telecom firm MTNL has sought Rs 1,151.65 crore for payment of interest arising out of sovereign guarantee bonds in the current fiscal, Parliament was informed on Thursday.
Minister of State for Communications Pemmasani Chandra Sekhar in a written reply to the Rajya Sabha said the government has in fact taken various steps for revival of MTNL and BSNL in 2019 and 2022 that include revival package to both companies.
"Mahanagar Telephone Nigam Limited (MTNL) has sought Rs 1,151.65 crore to meet the payment of interest on Sovereign Guarantee Bonds for Financial Year 2024-25," Sekhar said.
The minister was replying to a question on demands of funds by MTNL from the government to pay interests on debt obligations, details of the demand and the reasons for the state-owned telecom company MTNL making losses.
He said the government allocated Rs 69,000 crore in the first revival package in 2019 to BSNL and MTNL that brought down operating costs.
"In 2022, revival package amounting to around Rs 1.64 lakh crore was given for measures such as infusing fresh capital, restructuring debt and meeting viability gap," Sekhar said.
The Rs 1.64 lakh crore revival package in 2022 was approved for upgrading BSNL services, allocating spectrum, de-stressing its balance sheet, and augmenting its fibre network by merging Bharat Broadband Nigam Ltd (BBNL) with BSNL.
Separately, the government in the Budget has proposed to allocate Rs 3,668.97 crore for the payment of the principal amount of MTNL bonds.
Minister of State for Communications Pemmasani Chandra Sekhar in a written reply to the Rajya Sabha said the government has in fact taken various steps for revival of MTNL and BSNL in 2019 and 2022 that include revival package to both companies.
"Mahanagar Telephone Nigam Limited (MTNL) has sought Rs 1,151.65 crore to meet the payment of interest on Sovereign Guarantee Bonds for Financial Year 2024-25," Sekhar said.
The minister was replying to a question on demands of funds by MTNL from the government to pay interests on debt obligations, details of the demand and the reasons for the state-owned telecom company MTNL making losses.
He said the government allocated Rs 69,000 crore in the first revival package in 2019 to BSNL and MTNL that brought down operating costs.
"In 2022, revival package amounting to around Rs 1.64 lakh crore was given for measures such as infusing fresh capital, restructuring debt and meeting viability gap," Sekhar said.
The Rs 1.64 lakh crore revival package in 2022 was approved for upgrading BSNL services, allocating spectrum, de-stressing its balance sheet, and augmenting its fibre network by merging Bharat Broadband Nigam Ltd (BBNL) with BSNL.
Separately, the government in the Budget has proposed to allocate Rs 3,668.97 crore for the payment of the principal amount of MTNL bonds.
Source: PTI
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Srestha Finvest
- 0.89 ( 0.00)
- 69758135
- Standard Capital
- 1.26 ( -16.00)
- 55792425
- GTL Infrastructure
- 2.37 (+ 4.87)
- 50169700
- Vodafone Idea L
- 9.18 ( -1.50)
- 27130818
- Jaiprakash Power Ven
- 22.33 ( -2.45)
- 21183721
MORE NEWS
Hi-Tech Pipes Raises Rs 500 Cr via QIP -...
Hi-Tech Pipes successfully raised over Rs 500 crore through a Qualified Institutional...
China Finance Minister Hints at Economic Stimulus
China's finance minister signals potential for further economic stimulus, but no...
Mexico to Build Own Electric Car After Tesla Snub
Mexico's president vows to create an affordable electric car after Tesla scrapped plans...