Government deposits Rs 0.92 billion payment to clear bond interest dues of MTNL

The government has stepped in to make a Rs 0.92 billion payment through an escrow account towards bond dues of Mahanagar Telephone Nigam Limited (MTNL). Another Rs 0.64 billion would be paid later to clear interest dues that slated to come up in August 2024.

The second semi-annual interest (7.59 per cent) on certain MTNL bonds is falling due on July 20, 2024.

In addition, MTNL mentioned that it could not fund the escrow account with an adequate amount due to the provisions of third-party administrator (TPA) and insufficient funds.