“There’s too much debt on MTNL books: Almost ₹40,000 crore—it’s very tough to revive. If it is merged with BSNL, BSNL will go back into the red and the revival of both will be difficult," the official added.
The government is also evaluating de-listing MTNL from the stock exchanges, but has no plans to list BSNL, India’s fourth-largest teleco, the second official said.
BSNL’s financial position has improved over the past couple of years, with a ₹1.64 trillion government aid in 2021, and a recent ₹15,000 crore 4G equipment purchase order putting it on the recovery track. “They’ve prepaid ₹7,000 crore of bank loans, and they will begin offering 5G services by 2024," the official added.
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