According to the Department of Economic Affairs (DEA), Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) will be receiving a combined sovereign guarantee worth Rs 150 billion, following the revival package, approved in October 2019.
To this end, BSNL and MTNL will receive sovereign guarantee of Rs 85 billion and Rs 65 billion respectively for the restructuring of their existing debts and meeting the capex requirements for the launch of 4G services.
Further, the Department of Telecommunication (DoT) will review proper utilisation of the guaranteed funds and the guarantees annually to ensure that there is no risk of default in repayment of loans together with interest.
The issuance of sovereign guarantee is part of the Rs700 billion revival package announced by the government last year.
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