MTNL to repay ?125 cr debt to public sector bank by June-end
State-owned telecom operator MTNL has said it expects to repay ?125 crore debt to a public sector bank before June-end. Stating that ?495 crore of long-term loan will come up for repayment this fiscal, Chairman PK Purwar said MTNL is confident of meeting its obligations in this regard. Earlier, MTNL sought government aid for high employee cost of ?2,800 crore.
New Delhi, Jun 26 (PTI) State-owned telecom corporation Mahanagar Telephone Nigam Ltd (MTNL) today said it expects to repay about Rs 125 crore of debt before June-end. The debt-laden company - which offers landline and mobile telephony services in Delhi and Mumbai areas - said it will be able to make the repayment due to "one of the public sector banks", a few days before the June-30 deadline. "About Rs 125 crore is due for repayment, which we will be paying three days before the deadline...As far as the financing is concerned we do not see a challenge," MTNL Chairman and Managing Director, PK Purwar told PTI. Stating that about Rs 495 crore of long-term loan will come up for repayment in the current financial year, Purwar said the telecom PSU is confident of meeting its obligations in this regard. "We have our own revenue to the extent of about Rs 3,000 crore, and the repayment modalities are based on availability of funds. Sometimes we use the internal accruals and sometimes we use fresh line of credit," he said. Purwar, who recently met the interministerial group (IMG) on financial stress in the telecom sector, has been seeking "government support" for availability of Rs 8,000-10,000 crore capital over a period of time. Earlier this month, Purwar - after a meeting with the IMG officials - told reporters that since government is the promoter of MTNL, it "should not be found wanting" in support with regard to its capital requirements. MTNL has also sought government aid for its high employee cost - a tab of Rs 2,800 crore. The PSU has shot off a letter to the telecom department seeking extension in the validity of its mobile licence for the Delhi and Mumbai circles by two more years till 2021, at no extra cost. It has argued that the mobile licence for the two service areas remained underused in the first four years of the permits lifespan, for various reasons. 