No new restructuring plan for MTNL, government informs Lok Sabha; liabilities stood at Rs 40,008 crore in FY26
New Delhi, July 23
The liabilities of state-run telecom company Mahanagar Telephone Nigam Limited rose to Rs 40,008.52 crore in 2025-26 and it holds about Rs. 50,000 crore of noncore asset in market value terms, the government informed Lok Sabha on Tuesday.
In a written reply, Union Communications Minister Jyotiraditya Scindia said the Government has undertaken various financial and administrative measures for MTNL.
He said Mahanagar Telephone Nigam Limited (MTNL), incorporated in 1986 to provide telecom services in Delhi and Mumbai, came under severe financial and competitive stress.
"Government has undertaken various financial and administrative measures for MTNL, including inter alia, restructuring of high cost debt of MTNL through raising of Sovereign Guarantee Bonds (SGB) of Rs. 24,071 crore, funding of Voluntary Retirement Scheme (VRS) of MTNL employees through budgetary support of Rs. 4,327 crore, financial support of Rs. 3,657.05 crore to MTNL 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 MTNL's liabilities," he said.
The Minister said that 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 (Rs. 43 crore in FY 2023-24 to Rs. 195 crore in FY 2024-25 and Rs. 437 crore in FY 2025-26)," he said.
According to the data provided by the government, the company's total liabilities have increased steadily over the past five years, rising from Rs 30,960.09 crore in 2021-22 to Rs 32,477.54 crore in 2022-23, Rs 34,340 crore in 2023-24, Rs 37,119.94 crore in 2024-25 and Rs 40,008.52 crore in 2025-26.
Scindia said the government is not considering implementing any new restructuring plan for MTNL in the near future.
— ANI
Reader Comments
At least they're EBITDA positive now - ₹437 crore last year is a big jump from ₹43 crore! The VRS and debt restructuring helped, but why not monetize those ₹50,000 crore assets faster? Delhi and Mumbai have prime MTNL land that could clear all liabilities. Government needs to stop dilly-dallying! 🏢
Interesting how the liabilities grew from ₹30,960 crore to ₹40,008 crore in just 5 years despite all government support. ₹24,071 crore in bonds, ₹4,327 crore for VRS... where did all that money go? This is classic PSU mismanagement. No private company would survive this way.
As someone who used MTNL landline in Mumbai for 20+ years, this pains me. 🥺 The service was okay until competition came. But now with BSNL taking over operations, at least rural areas still get some connectivity. Hope the asset monetization happens soon - that MTNL exchange in Bandra is prime real estate!
Liabilities rising every year but no new plan? That's like ignoring a leaking pipe. Government should learn from BSNL's 4G revival or just sell MTNL assets to clear dues. ₹40,000 crore is no joke - that could fund schools or hospitals. Time for tough decisions, not bandaids. 🩹
The EBITDA improvement from ₹43 cr to ₹437 cr is genuinely impressive - shows the cost-cutting through VRS and operational transfer to BSNL is working. But liabilities still growing because debt servicing costs are high.
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