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DoT May Offer Rs 11,000-crore Loan to Address BSNL’s Concerns

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The telecom department is considering offering a soft loan of as much as Rs 11,000 crore to a potential combination of loss-making state-run telecom operators Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) to address BSNL’s concerns about taking on MTNL’s mammoth debt on its books.

MTNL currently has debt of Rs 14,600 crore, stems from multiple loans taken to buy airwaves four years ago to offer third-generation telecom and broadband wireless services. The burden is likely to lessen to about Rs 11,000 crore, including interest component, by the yearend as MTNL is due to receive a Rs 4,534 crore refund from the Department of Telecommunications (DoT) for its surrendered broadband wireless spectrum and could use most of that to repay loans. Original post at ET Telecom

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Wahengbam Rorrkychand

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