**Summary:**
This document summarizes the Indian government's response to a parliamentary question regarding the financial position of Mahanagar Telephone Nigam Limited (MTNL), a public sector undertaking, as of June 30, 2025. MTNL's total debt obligations amount to Rs. 34,483.92 crore, comprising Rs. 24,071 crore in Sovereign Guarantee Bonds (SGBs), Rs. 1,828 crore in interest for servicing SGBs, and Rs. 8,584.92 crore in bank loans (including interest) from seven public sector banks. In 2022, a Committee of Secretaries was formed, including 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. This committee addresses issues related to MTNL's debt mitigation. The Minister of State for Communications and Rural Development, Dr. Pemmasani Chandra Sekhar, provided this information in response to Lok Sabha Unstarred Question No. 2798 on August 6, 2025.
Key Entities Referenced
Ministry of Communications: A ministry of the Government of India.
Department of Telecommunications: A department under the Ministry of Communications, Government of India.
Lok Sabha: The lower house of the Parliament of India.
MTNL: Mahanagar Telephone Nigam Limited, a public sector telecommunications company.
Dr. Pemmasani Chandra Sekhar: Minister of State for Communications and Rural Development.
Department of Expenditure: A department under the Ministry of Finance, Government of India.
Department of Investment Public Asset Management: A department of the Ministry of Finance in the Government of India.
Department of Public Enterprises: A department of the Government of India that formulates policy pertaining to Public Sector Enterprises (PSEs).
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS
DEPARTMENT OF TELECOMMUNICATIONS
LOK SABHA
UNSTARRED QUESTION NO. 2798
ANSWERED ON 6TH AUGUST, 2025
FINANCIAL POSITION OF PUBLIC SECTOR UNDERTAKINGS BANK LOANS
2798. COM. SELVARAJ V:
SHRI SUBBARAYAN K:
Will the Minister of COMMUNICATION be pleased to state:
(a) whether it is a fact that MTNL has defaulted on bank loans worth Rs. 8,585 crore from seven
public sector banks and its total debt obligations reached Rs. 34,484 crore as on June 30, 2025;
(b) if so, the details thereof; and
(c) whether the Government is planning to face the grave financial position of this public sector
undertaking and if so, the details thereof?
ANSWER
MINISTER OF STATE FOR COMMUNICATIONS AND RURAL DEVELOPMENT
(DR. PEMMASANI CHANDRA SEKHAR)
(a) to (c) The details of debt liabilities of MTNL, as on 30.06.2025, are as under:
Sl. No. Detail Amount
1 Sovereign Guarantee Bonds (SGB) Rs. 24,071 crore
2 Interest for servicing of SGBs Rs. 1,828 crore
3 Bank Loans including interest Rs. 8,584.92 crore
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 mitigation of MTNL.
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