This document summarizes the Indian government's response to questions regarding the revival of Mahanagar Telephone Nigam Limited (MTNL), as answered in Lok Sabha Unstarred Question No. 4519 on August 20, 2025. The response, delivered by the Minister of State for Communications and Rural Development, Dr. Pemmasani Chandra Sekhar, addresses concerns about the long-term viability of MTNL given multiple revival packages since 2019.
The government outlines several steps taken to revive both Bharat Sanchar Nigam Limited (BSNL) and MTNL. These include a Rs. 69,000 crore package in 2019 aimed at reducing operating costs, a Rs. 1.64 lakh crore package in 2022 focusing on capital infusion, debt restructuring, and viability gap funding for rural telephony, and the allocation of 4G/5G spectrum to BSNL in 2023 with an outlay of approximately Rs. 89,000 crore. Furthermore, in 2025, an additional Rs. 6,982 crore was approved as CAPEX support for BSNL's 4G network rollout. The Department of Telecommunications (DoT) regularly reviews the implementation of these packages, and funds are released according to Cabinet approvals. Utilization certificates are obtained from BSNL and MTNL to ensure accountability.
An agreement between BSNL and MTNL, effective January 1, 2025, delegates the maintenance and operational activities of MTNL to BSNL on an EBITDA-neutral basis. The integration of telecom services is ongoing. As of June 30, 2025, MTNL has generated Rs. 2,303.29 crore in revenue through asset monetization (land and buildings), against a target of Rs. 22,918 crore.
Key Entities Referenced
Ministry of Communications: A ministry of the Government of India responsible for telecommunications and postal services.
Department of Telecommunications: A department under the Ministry of Communications, Government of India, responsible for telecom policy, licensing, and regulation.
MTNL: Mahanagar Telephone Nigam Limited, a state-owned telecommunications service provider in India.
BSNL: Bharat Sanchar Nigam Limited, a state-owned telecommunications service provider in India.
SHRI VIJAYAKUMAR ALIAS VIJAY VASANTH: Member of Parliament who raised the question in Lok Sabha.
Lok Sabha: The lower house of the Parliament of India.
EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operating performance.
DR. PEMMASANI CHANDRA SEKHAR: Minister of State for Communications and Rural Development.
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS
DEPARTMENT OF TELECOMMUNICATIONS
LOK SABHA
UNSTARRED QUESTION NO. 4519
ANSWERED ON 20TH AUGUST, 2025
REVIVAL PACKAGES OF MTNL
4519. SHRI VIJAYAKUMAR ALIAS VIJAY VASANTH:
Will the Minister of COMMUNICATIONS be pleased to state:
(a) the explain manner in which the Rs. 6,000 crore revival package ensures long-term viability
rather than serving as a temporary bailout in view of MTNL's continued financial, if so, the details
thereof;
(b) whether the Government has published a time-bound roadmap or white paper on MTNL’s
full financial turnaround, especially after multiple revival packages since 2019 and if so, the details
thereof, if not, the reasons therefor;
(c) whether the measurable performance benchmarks have been set post-approval of the 2023–
24 revival package and if so, the details thereof and the manner in which accountability is ensured in
public spending on MTNL and BSNL;
(d) the manner in which the Government justify repeated financial infusion into MTNL without
resolving its legacy issues of employee costs, inefficient infrastructure and declining revenue;
(e) the current status of MTNL’s asset monetization and the manner in which the revenue has
been actually generated versus the target set under the revival plan; and
(f) the details of safeguards put in place by the Government to protect the identity, workforce
and assets of MTNL with MTNL's daily operations now shifted to BSNL?
ANSWER
MINISTER OF STATE FOR COMMUNICATIONS AND RURAL DEVELOPMENT
(DR. PEMMASANI CHANDRA SEKHAR)
(a) to (c) Government has taken various steps for revival of BSNL/MTNL as mentioned below:
In 2019, first revival package amounting to around Rs. 69 Thousand Crores was given that
brought down the operating costs of BSNL/MTNL.
In 2022, revival package amounting to around Rs. 1.64 Lakh Crores was given. It focused on
infusing fresh capital, restructuring debt, viability gap funding for rural telephony etc.
In 2023, Government approved the allotment of 4G/5G spectrum to BSNL with the total
outlay of around Rs. 89 Thousand Crores.
In 2025 an additional amount of Rs 6,982 Crores has been approved as additional CAPEX
support for rollout of 4G network by BSNL across the country.
The implementation of the packages is being regularly reviewed at various levels in DoT.
The revival packages are being implemented and funds are being released as per the approval of
the Cabinet. Further, as per the existing rules, the utilization certificates are taken from BSNL and
MTNL to ensure the accountability.
(d) to (f) 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 EBITDA neutral basis. The integration of telecom services
between MTNL and BSNL is still underway.
Further, MTNL has generated the revenue of Rs. 2,303.29 Crore out of the target Rs. 22,918
Crore through Asset Monetization of land & building as on 30.06.2025.
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