BSNL 4G News / The government is now in the mood to completely revive BSNL, this is important information about MTNL

The government is considering the option of handing over the operation of Mahanagar Telephone Nigam Limited (MTNL) to BSNL through an agreement. A source related to the matter said that the government is considering this option instead of merger. The final decision on this is likely to be taken in a month. The source said that the option of handing over the operation of debt-ridden MTNL to Bharat Sanchar Nigam

Vikrant Shekhawat : Jul 14, 2024, 08:59 AM

BSNL 4G News: The government is considering the option of handing over the operation of Mahanagar Telephone Nigam Limited (MTNL) to BSNL through an agreement. A source related to the matter said that the government is considering this option instead of merger. The final decision on this is likely to be taken in a month. The source said that the option of handing over the operation of debt-ridden MTNL to Bharat Sanchar Nigam Limited (BSNL) through an agreement is being considered. It is worth noting that the central government is once again completely revising BSNL. In recent times, BSNL has also benefited from the increase in tariff by private mobile companies. New consumers are joining BSNL rapidly. In such a situation, getting the operation of MTNL will help in increasing the user base further.

MTNL has a huge debt

He said that considering the huge debt of MTNL, merger with BSNL is not a favorable option. After the decision is taken, the proposal will be placed before the committee of secretaries and after that the Cabinet will take a final decision in this regard. MTNL had said in a notice to the stock market this week amid the growing financial crisis that it is unable to pay interest to some bondholders due to insufficient funds. This interest is payable on July 20, 2024. As per the Tripartite Agreement (TPA) signed between MTNL, Department of Telecommunications and Beacon Trusteeship Limited, MTNL has to pay half-yearly interest with sufficient amount in the escrow account 10 days before the due date.

MTNL provides telecom services in Delhi and Mumbai

MTNL said that in view of the provisions of the TPA, it is informed that due to insufficient funds, MTNL has not been able to deposit sufficient amount in the escrow account. MTNL provides telecom services in Delhi and Mumbai, while BSNL operates all over India except Delhi and Mumbai. Private telecom companies like Reliance Jio and Bharti Airtel have increased their subscriber base in the last few months, but MTNL's customer base is declining.