No recharge for MTNL; state-run telco asked to speed up monetisation

The government will no longer infuse any fresh capital into ailing Mahanagar Telephone Nigam (MTNL), but may not initiate its closure right away, as this would be done only after the company clears its liabilities of around Rs 32,000 crore, according to official sources.

To generate funds for expunging the liabilities, the company has been asked to generate revenues from asset monetisation and operations, and bring in efficiency to reduce costs, the sources added.

With little prospects of the revival of MTNL, the government is clear that the company will have to be wound up ultimately, most probably within a decade. But for this, all the liabilities need to be cleared and assets disposed of, the sources said, adding that this was the reason for not closing it down straightway.

Also Read CPPIB drops plans to sell 50% IndoSpace JV stake Friction with Canada unlikely to dent India’s overseas trade THESE central govt employees will receive higher pension due to ‘notional increment’ Operating losses of state discoms to remain high this fiscal despite a 15-20% dip, dependence on govt support to continue

Currently, the Central government owns a 56.25% stake in the state-run telecom operator, which provides services in Delhi and Mumbai. The public holds 43.75%, including 13.12% owned by Life Insurance Corporation of India (LIC).

Also ReadPaytm swings back to profit at Rs 928.30 crore on gains from ticketing business sale, revenue drops by 34.1% YoY

The government had approved the first revival package for BSNL and MTNL in 2019. In 2022, it approved a second revival package for BSNL/MTNL amounting to Rs 1.64 lakh crore, where the share of MTNL is relatively less.

After the recent speculative spike in MTNL’s share price in the hope of the company being delisted, the stock has started to recede after the government indicated that there is no such plan. With the company having varied liabilities that are to be met, the shareholders won’t get anything in case of a closure, a senior official had earlier told FE.

In the last six months, the company has defaulted on bank loan payments worth Rs 1,600 crore. The company also has other liabilities such as AGR and spectrum dues to the government

“How do you close a company which has liabilities till 2034?

 » Read More

Related Articles

New Tax Regime: These deductions, exemptions still available for you

The Indian government introduced a new tax regime in 2020, offering lower tax rates while removing several exemptions and deductions available under the old system. Initially optional, this regime became the default in 2023, requiring taxpayers to opt out if they wished to continue under the old structure. Despite the removal of many benefits, certain

Range bound session: Nifty ends above 23,600, Sensex holds 78,000 led by Adani Ports, Infosys

The stock markets faced a downturn on Thursday, with major indices closing in the red. The BSE Sensex dropped by 213.12 points or 0.27%, ending the day at 78,058.16, while the NSE Nifty 50 saw a decline of 70.15 points, down by 0.3%, and closed at 23,626.15. The Nifty Bank index also ended the day

IT stocks stable as Cognizant raises annual and quarterly revenue guidance

Shares of Indian IT companies are in the spotlight today after the Nasdaq-listed IT services major Cognizant Technology Solutions, reported its Q4 results that exceeded Wall Street expectations. The Nifty IT Index as well as individual tech counters like Infosys, Wipro, Tech Mahindra and HCL Tech are all in the green even as the markets

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

New Tax Regime: These deductions, exemptions still available for you

The Indian government introduced a new tax regime in 2020, offering lower tax rates while removing several exemptions and deductions available under the old system. Initially optional, this regime became the default in 2023, requiring taxpayers to opt out if they wished to continue under the old structure. Despite the removal of many benefits, certain

Range bound session: Nifty ends above 23,600, Sensex holds 78,000 led by Adani Ports, Infosys

The stock markets faced a downturn on Thursday, with major indices closing in the red. The BSE Sensex dropped by 213.12 points or 0.27%, ending the day at 78,058.16, while the NSE Nifty 50 saw a decline of 70.15 points, down by 0.3%, and closed at 23,626.15. The Nifty Bank index also ended the day

IT stocks stable as Cognizant raises annual and quarterly revenue guidance

Shares of Indian IT companies are in the spotlight today after the Nasdaq-listed IT services major Cognizant Technology Solutions, reported its Q4 results that exceeded Wall Street expectations. The Nifty IT Index as well as individual tech counters like Infosys, Wipro, Tech Mahindra and HCL Tech are all in the green even as the markets

Three midcap stocks to avoid in this reversal market

By Brijesh Bhatia In investing, market cycles are inevitable. Whether in a bullish or bearish phase, investor sentiment and stock performance often shift with the tides of economic and market changes. During a bullish market, investors are drawn to stocks with strong upward trends, enjoying the thrill of the ride. But as the market turns

Demand for upscale properties is on the rise in Mumbai and Pune: Vishal Jumani

Mumbai and Pune’s luxury real estate market is thriving, with growing demand for homes offering long-term value and sustainability. Both cities are witnessing a transformation towards properties that harmoniously combine urban living with extensive amenities, attracting buyers who prioritize comfort and meaningful living, says Vishal Jumani, Joint Managing Director, Supreme Universal. In an exclusive interview