Cash-strapped Mahanagar Telephone Nigam (MTNL) has submitted a comprehensive revival plan which includes approval for a monetisation scheme, introducing a voluntary retirement scheme (VRS), giving up 3G spectrum, converting its loans into sovereign guarantees and revision of employees’ pay.
In a letter to the Department of Telecommunication (DoT), MTNL said loans to the tune of Rs 20,000 crore was taken to clear statutory dues. “The government must convert these with sovereign guarantee and take responsibility for the principal and interest. This would save the company Rs 2,000 crore per annual interest payment,” it said.
The company also hopes to garner around Rs 20,000 crore through monetisation of close to 50 assets and get refunds worth of around Rs 4,100 crore on account of interest cost borne for broadband spectrum in 2010 for 4G services. DoT sources have confirmed that the claims are spread over a decade and that the request is currently under consideration.
MTNL is trading below its 50-day moving average and 200-day moving average of 13.98 and 14.19 levels, respectively on the BSE.
Mahanagar Telephone Nigam closed at Rs 13.89, up Rs 1.88, or 15.65 percent. It has touched an intraday high of Rs 14.35 and an intraday low of Rs 12.21.
First Published on Feb 21, 2019 04:09 pm