Synopsis

MTNL's liabilities have reached approximately forty thousand crore rupees by fiscal year 2025-26. Government measures have helped MTNL become operationally profitable and EBITDA-positive. These actions include debt restructuring and financial support for employee retirement schemes. MTNL holds non-core assets valued higher than its total outstanding liabilities. No new restructuring plans for MTNL are being considered by the government.

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New Delhi: State-run telecom firm MTNL has seen a surge in liabilities to Rs 40,000 crore till fiscal year 2025-26, Parliament was informed on Wednesday.

Union communications minister Jyotiraditya Scindia, in a written reply to Lok Sabha, said that the government has taken a series of measures that have helped MTNL turn operationally profitable.

According to data shared by the minister, MTNL had total liabilities of Rs 40,008.52 crore.

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"Against total liabilities of approximately Rs 40,000 crore, MTNL holds approximately Rs 50,000 crore of non-core asset in market value terms," Scindia said.

The minister said that Mahanagar Telephone Nigam Limited (MTNL), incorporated in 1986 to provide telecom services in Delhi and Mumbai, came under severe financial and competitive stress.

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He further said that the government has undertaken various financial and administrative measures for MTNL, including restructuring of high-cost debt through raising of Sovereign Guarantee Bonds (SGB) of Rs 24,071 crore, funding of Voluntary Retirement Scheme (VRS) of MTNL employees through the budgetary support of Rs. 4,327 crore, financial support of Rs 3,657.05 crore for servicing of SGB interest payments, transfer of operational activities of MTNL to BSNL through a service agreement and monetisation of MTNL assets for payment of liabilities.

"Sovereign Guarantee Bonds (SGB) of Rs 24,071 crore have been raised and Rs 4,327 crore sanctioned and released for VRS scheme. As a result of these measures, MTNL has remained EBITDA-positive since FY 2020-21, with EBITDA improving steadily since FY 2023-24, (from) Rs 43 crore in FY 2023-24 to Rs 195 crore in FY 2024-25 and Rs 437 crore in FY 2025-26," Scindia said.

The minister said that the government is not considering implementing any new restructuring plan for MTNL in the near future.