The Cabinet is reportedly planning to convene next week with various stakeholders to deliberate on the future of Mahanagar Telephone Nigam Limited (MTNL), including its loan defaults. The meeting is expected to be attended by the telecom secretary, expenditure secretary, and senior officials from the finance ministry, along with representatives from the concerned banks with loan exposure to MTNL.
As of April 30, 2025, MTNL has defaulted on Rs 83.46 billion in loan repayments to several public sector banks such as Union Bank of India, Indian Overseas Bank, Bank of India, Punjab National Bank, and State Bank of India. The total includes Rs 77.94 billion in outstanding principal and Rs 5.52 billion in overdue interest and penal charges. These loans are backed by sovereign guarantees (SG).
In addition, MTNL carries Rs 240.71 billion in liabilities from SG bonds and owes Rs 11.51 billion to the Department of Telecommunications (DoT) in bond interest payments, bringing its total financial debt to Rs 335.68 billion as of March 31, 2025. The SG bonds are scheduled for repayment by 2034.
While the government has no immediate intention of shutting down MTNL, it is working on revival strategies. However, it remains reluctant to infuse substantial funds to support the company’s recovery.
