MTNL currently carries liabilities of over Rs 33,500, including bank loans, sovereign guaranteed debt and borrowings from the Telecommunications Department. Of this, almost Rs 8,300 are paid to a consortium of public sector banks, many of which are classified as defaults. Such include publicly listed companies such as Indian Overseas Bank, Indian Bank, Punjab National Bank, National Bank of India, UCO Bank, and Punjab & Sindh Bank.
The deepening crisis has had a cascade effect on shareholders, vendors and employees. Retail shareholders have seen stock value erosion amid years of uncertainty, but vendor payments and employee fees have faced delays. Pension recipients are also dressed in crossfires, with MTNL cash flows maintaining little repetitive debt. MTNL stocks remain unstable and often respond to plans for merger consultations with BSNL rather than basic strength.
While the revival of MTNL continues to be an ongoing work, the government’s other communications PSU, BSNL, is on a stiffer scaffolding. The minister said that over 90,000 towers have been constructed in the past year alone, with the target being to surpass one lark tower by August. The focus is to deploy high-quality Indigenous 4G technology before 5G rollouts are considered.
“Once you cross the 1 Lark Tower milestone, normal people start to see the new BSNL,” Penmasani said. The government expects BSNL to grow by 10-15% from now on, at least as a reliable backup network as a starting point.
He showed that the greater purpose is to build a synergy between BSNL and MTNL over time, while maintaining market stability and protecting stakeholders. The roadmap remains challenging, but the government claims that all options are on the table.
