Overview

• MTNL has officially defaulted on Rs 8,584.93 crore of principal and interest payments to seven public sector banks as of June 30, 2025.
• The company's total financial indebtedness stands at Rs 34,484 crore, comprising Rs 8,585 crore in bank loans, Rs 24,071 crore in sovereign guarantee bonds and Rs 1,828 crore in Department of Telecommunications loans.
• Union Bank of India and Indian Overseas Bank are MTNL’s largest creditors, with outstanding defaults of Rs 3,733.22 crore and Rs 2,434.13 crore respectively.
• Under a Cabinet-approved revival plan, the government has scrapped auctions and introduced direct valuations for phased monetisation of surplus land, buildings, towers and fibre networks.
• Recovery hinges on swift asset disposals managed by the National Land Monetization Corporation and continued state support to stabilise the operator’s finances.