Debt ridden MTNL raises Rs 800 crore claims from DoT

Telecom operators, Vodafone , pan-India 4G spectrum,, Jio, Airtel, Aircel, Tata Teleservices, Reliance Communications, , next-generation telecom services, Bharti Airtel, Reliance Jio, Vodafone, Idea Cellular, spectrum sale, mobile airwaves,

MTNL – where a massive cash crunch has stalled salary payments for two months now – has approached the government with about 800 crore worth of claims, including rent-related dues and reimbursement for a bond issue dating back several years, according to multiple sources.

The Department of Telecom (DoT) is examining the claims that have been made by the state-owned corporation, sources said.

ALSO READ: Tech Mahindra secures large multi-year AT&T deal

The matter assumes significance as the company is reeling under a massive cash shortage and has been unable to pay staff wages for July and August. MTNL, last week, admitted that salary payment for two months is pending and that sincere effort is being made to release at least a portion of the dues at the earliest.

DoT sources said that MTNL has approached the Telecom Department with outstanding dues, including over 400 crore reimbursements pertaining to bonds that MTNL claims it had raised on behalf of the government many years ago. Sources added that the Telecom Department is yet to ascertain the veracity of the claims made by MTNL.

The telecom corporation has also sought clearance of rent-related dues for DoT offices located at MTNL premises.

Distressed telecom PSUs MTNL and Bharat Sanchar Nigam Ltd (BSNL) have been incurring losses and have been facing problems in clearing staff salaries on time in the recent past.

A revival plan for the state-owned telecom firms is under active consideration.

The employee cost of BSNL is 75.06 % and that of MTNL is 87.15% of their total income, while the same for private telecom companies varies between 2.9% to 5%.

According to data shared in the Lok Sabha in June this year, the market share of MTNL in the two circles where it operates (Mumbai and Delhi) has declined to 6.95% at the end of 2018-19 from 7.37% in 2016-17.

LEAVE A REPLY

Please enter your comment!
Please enter your name here