MTNL defaults on loan repayments worth nearly a billion dollars

MTNL has failed to pay ₹8,659 crore principal and interest to seven public sector lenders, including State Bank of India and Punjab National Bank.

Mahanagar Telephone Nigam Ltd. (MTNL) has defaulted on loan repayments yet again, raising further questions on the revival of the state-run telecom operator.

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The Mumbai-based company has failed to pay ₹8,659 crore (about $990.48 million) principal and interest to seven public sector lenders, including State Bank of India and Punjab National Bank, according to an exchange filing on Monday. It includes ₹7,794 crore in principal and ₹865 crore in overdue interest. These repayments were due between 12 August 2024 and and 3 February 2025.

In July, MTNL had disclosed defaults of ₹8,585 crore to the same lenders.

The debt-laden operator, which has struggled with falling subscriber numbers, mounting losses and shrinking relevance in India’s highly telecom market, has been surviving largely on government support and debt rollovers.

As on 31 July, MTNL's total debt stood at ₹34,577 crore as against ₹34,484 crore a month ago. The debt also includes sovereign-guaranteed bonds and loans from the Department Of Telecommunications.