INVC NEWS
New Delhi : The central government is considering handing over the operation of Mahanagar Telephone Nigam Limited (MTNL) to BSNL under an agreement. If sources are to be believed, the government is considering this option instead of merging MTNL. The final decision on merger or operation is expected to be taken within a month.
Sources say that the central government is considering the option of handing over the operation of MTNL, which is deeply in debt, to Bharat Sanchar Nigam Limited (BSNL) under an agreement. Official sources say that MTNL is heavily in debt, so merger with BSNL will not be a favorable option. After a decision is taken in this matter, the proposal will be placed before the committee of secretaries and only after that the cabinet will take a final decision.
It is worth noting that due to the increasing financial crisis, MTNL had informed the stock market this week that it is unable to pay interest to some bondholders due to insufficient funds. This interest amount is payable on 20 July 2024. As per the Tripartite Agreement (TPA) signed between MTNL, Department of Telecommunications and Beacon Trusteeship Limited, MTNL has to deposit the half-yearly interest amount along with sufficient amount in the escrow account 10 days before the payment date.
Under this, MTNL has informed that MTNL has not been able to deposit sufficient amount in the escrow account. Let us tell you here that MTNL provides telecom services in Delhi and Mumbai, while BSNL operates in the entire country except Delhi and Mumbai.
