**Summary:**
This document summarizes the Indian government's response to Lok Sabha Unstarred Question No. 4514 regarding the financial status of Mahanagar Telephone Nigam Limited (MTNL), answered on August 20, 2025, by the Minister of State for Communications and Rural Development, Dr. Pemmasani Chandra Sekhar. The question addresses MTNL's loan defaults, outstanding liabilities, reasons for financial distress, and potential government interventions.
MTNL has defaulted on bank loans totaling Rs. 8,659.08 crore over the last ten years, with Rs. 8,300 crore defaulted between August 2024 and February 2025 to a consortium of public sector banks. As of July 31, 2025, MTNL's total debt liability stands at Rs. 34,713.08 crore. These loans have been classified as Non-Performing Assets (NPA). The primary reason for the financial distress is the decline in revenue from operations.
In 2022, the Cabinet approved the constitution of a Committee of Secretaries to address MTNL's debt resolution through asset monetization. The committee comprises the Secretary of the Department of Expenditure, the Secretary of the Department of Telecommunications, the Secretary of the Department of Investment and Public Asset Management, and the Secretary of the Department of Public Enterprises.
Effective January 1, 2025, Bharat Sanchar Nigam Limited (BSNL) has taken over the maintenance and operational activities of MTNL's telecommunication services on an EBIDTA neutral basis. The government is exploring options to manage MTNL's sustainability, including merger, disinvestment, or strategic partnership.
Key Entities Referenced
Mahanagar Telephone Nigam Limited (MTNL): A telecommunications company that has defaulted on loan repayments.
Department of Telecommunications (DoT): A department of the Government of India to which MTNL has dues.
Rs. 8,659.08 crore: The total bank loans defaulted by MTNL during the last ten years.
Rs. 34,713.08 crore: The total debt liability of MTNL as on 31.07.2025.
Non-Performing Asset (NPA): The classification of MTNL's loans due to defaults.
Cabinet Approval in 2022: Approval for Committee of Secretaries to address MTNL's debt resolution through asset monetisation.
Bharat Sanchar Nigam Limited (BSNL): Company that has signed an agreement with MTNL to run its telecommunication services.
Committee of Secretaries: Committee comprising of i Secretary, Department of Expenditure, ii Secretary, Department of Telecommunications, iii Secretary, Department of Investment Public Asset Management and iv Secretary, Department of Public Enterprises constituted to take up the issues related to debt resolution of MTNL through asset monetisation etc
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS
DEPARTMENT OF TELECOMMUNICATIONS
LOK SABHA
UNSTARRED QUESTION NO. 4514
ANSWERED ON 20TH AUGUST, 2025
FINANCIAL POSITION OF MTNL
4514. MS SAYANI GHOSH:
Will the Minister of COMMUNICATIONS be pleased to state:
(a) whether the Government is aware that Mahanagar Telephone Nigam Limited (MTNL) has
defaulted on loan repayments exceeding Rs. 8,300 crore to a consortium of public sector banks
between August 2024 and February 2025 and if so, the details of the total loan defaulted during the
last ten years;
(b) the total outstanding financial liabilities of MTNL including bank dues, State Government
Bonds and dues to the Department of Telecommunications (DoT) as of date;
(c) the reasons for MTNL's repeated loan defaults and the steps taken by the Government to
address the company's liquidity crisis;
(d) whether any bailout package or revival roadmap is under consideration for MTNL and if so,
the details thereof;
(e) the impact of these defaults on the financial health of the lending public sector banks; and
(f) whether the Government is exploring any merger, disinvestment or strategic partnership to
manage MTNL sustainability and if so, the details thereof?
ANSWER
MINISTER OF STATE FOR COMMUNICATIONS AND RURAL DEVELOPMENT
(DR. PEMMASANI CHANDRA SEKHAR)
(a) to (f) The total bank loans defaulted of MTNL during the last ten years is Rs. 8,659.08 crore
with total debt liability of Rs. 34,713.08 crore as on 31.07.2025. These loans have been declared as
Non-Performing Asset (NPA).
The Financial distress is due to decline in revenue from operations. As per Cabinet Approval
in 2022, a Committee of Secretaries comprising of (i) Secretary, Department of Expenditure, (ii)
Secretary, Department of Telecommunications, (iii) Secretary, Department of Investment & Public
Asset Management and (iv) Secretary, Department of Public Enterprises has been constituted to take
up the issues related to debt resolution of MTNL through asset monetisation etc.
An agreement between BSNL and MTNL has been signed, with effect from 1st January 2025,
to run MTNL’s telecommunication services by taking over maintenance and operational activities of
MTNL on EBIDTA neutral basis.
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