'Will Do Whatever It Takes To Revive MTNL,' Says MoS Communications Pemmasani | Profit Exclusive

The government remains committed to reviving the ailing state-run telecom operator Mahanagar Telephone Nigam Ltd., according to Minister of State for Communications Dr CS Pemmasani.

"We are not giving up on MTNL. A committee of secretaries is already working to identify the root causes of its distress and come up with corrective measures," Pemmasani told NDTV Profit in an interaction.

Ministers' comments come ahead of a meeting scheduled next week led by the Cabinet Secretary, where the government will revisit options to address the telco’s financial distress. At a time when the Finance Ministry has turned down a fresh capital infusion request, citing fiscal constraints, the spotlight now shifts to how the government plans to manage MTNL’s Rs 8,300 crore debt to seven listed public sector banks.

Minister Pemmasani also said asset monetisation is being pursued aggressively to ease the financial pressure. The government has cut down the timeline for monetising MTNL’s land assets from two years to just six to eight months. Land parcels valued above Rs 100 crore are being transferred to the National Land Monetisation Corporation for expedited processing. "Minister Scindia and I are monitoring the asset monetisation efforts closely," he said, although he declined to provide a total valuation for MTNL’s land holdings.

MTNL is currently burdened with a debt of over Rs 33,500 crore, including bank loans, sovereign-guaranteed bonds, and borrowings from the Department of Telecommunications. Of this, nearly Rs 8,300 crore is owed to a consortium of public-sector banks, with much of that classified as defaulted. The likes of which include listed entities such as Indian Overseas Bank, Bank of India, Punjab National Bank, State Bank of India, UCO Bank and Punjab & Sind Bank.

The deepening crisis has had a cascading effect on shareholders, vendors, and employees. Retail shareholders have seen their equity value erode amid years of uncertainty, while vendor payments and employee dues have faced prolonged delays. Pensioners too have found themselves in the crossfire, with MTNL’s cash flow barely sustaining recurring liabilities. MTNL’s stock remains volatile, often reacting to plans of revival or merger talks with BSNL, rather than any fundamental strength.

While MTNL’s revival continues to be a work in progress, BSNL, the government’s other telecom PSU, is on a firmer footing. The minister said that over 90,000 towers have been built in the past year alone, and the target is to cross one lakh towers by August. The focus is on deploying high-quality indigenous 4G technology before any 5G rollout is considered.

“Once we cross the one lakh towers milestone, the common man will start seeing the new BSNL,” Pemmasani said. The government expects BSNL to grow 10–15% annually from here on and to at least become a reliable backup network as a starting point.

The larger aim, he indicated, is to build synergy between BSNL and MTNL over time while preserving market stability and protecting stakeholders. The roadmap remains challenging, but the government insists that all options are on the table.