Mahanagar Telephone Nigam Limited (MTNL) has defaulted on a total payment of Rs 57.26 billion, which includes a principal amount of Rs 54.92 billion raised from various banks and an interest of Rs 2.34 billion. The company’s total financial debt now stands at Rs 320.97 billion, 40 times more than its consolidated annual income of Rs 7.98 billion.
As per the company, MTNL has defaulted on payment of Rs 34.80 billion, due to be paid to Union Bank of India. Meanwhile, Bank of India has total exposure of Rs 10.39 billion comprising principal outstanding of Rs 9.99 billion, Punjab National Bank Rs 4.47 billion with principal of Rs 4.32 billion, State Bank of India Rs 3.29 billion with Rs 3.13 billion principal outstanding, UCO Bank Rs 2.55 billion with Rs 2.45 billion principal outstanding. MTNL has defaulted on payment of Rs 1.73 billion due to paid to Punjab and Sind Bank, comprising the principal amount of Rs 1.66 billion.
In addition, Jyotiraditya M. Scindia, Union Minister of Communications and Development of North Eastern Region assured that there is no insecurity about the debt raised by MTNL as it is backed by a sovereign guarantee and the company’s business will be transferred to Bharat Sanchar Nigam Limited (BSNL).
