ET Graphics: MTNL’s debt crisis deepens despite revival efforts
Burdened by operational challenges and shrinking market share, Mahanagar Telephone Nigam (MTNL) has defaulted on loans amounting to Rs 8,585 crore from seven public sector banks. The state-owned telco's financial struggles persist despite governme...
Mahanagar Telephone Nigam (MTNL) on Tuesday informed stock exchanges that it has defaulted on loans totalling Rs 8,585 crore from seven public sector banks.
The loss-making state-owned telco has been consistently defaulting on its debt obligations. Its shrinking market share and operational challenges have hurt its ability to pay employees, vendors and pensioners despite several government-led revival attempts, including plans for asset monetisation.
Although the Centre has signalled continued support, a concrete debt restructuring plan is pending.
