Govt likely to pay bond interest dues of MTNL, assuring no default

The government will pay the bond dues of ailing Mahanagar Telephone Nigam Ltd (MTNL), a DoT source said assuring that there will be no default, and that the amount will be paid before the due date of July 20.

The move assumes significance as it would avert a looming crisis for the telecom corporation which is being seen teetering on the brink with regard to its debt obligations that are becoming due. All eyes are on MTNL, ever since the debt-laden firm last week expressed its inability to make interest payments to certain bondholders due to paucity of funds.

Telecom Department sources said that the government will step in and pay the said dues, and asserted that there won't be any default on the same.

In this particular case, where the second semi-annual interest (7.59 per cent) on certain bonds is falling due on July 20, 2024, DoT sources said that "the dues will be paid before the date".

Amid mounting financial woes, MTNL last week informed in a statutory filing that it is unable