Centre to pick up bond dues tab for MTNL

The government will pay MTNL bond interest, preventing a sovereign default after MTNL failed to deposit in an escrow account. Borrowers will be compensated per Department of Economic Affairs rules by July 20. MTNL's debt restructuring, involving ₹28,000-30,000 crore, includes staff transfers to BSNL and retirements. MTNL raised ₹2,480 crore in July 2023 via non-convertible debentures at 7.59% interest. The Department of Telecommunications and Beacon Trusteeship oversee payments. India Ratings downgraded MTNL to 'IND D', with a pre-default government guarantee.