BSNL, MTNL clinch Rs 15,000-cr sovereign guarantee; DEA sets stiff riders

Almost 10 months after Rs 15,000-crore sovereign guarantee was announced as part of their revival package, Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) have got an approval for the same from the Department of Economic Affairs (DEA) in the finance ministry. The DEA, however, has set stiff riders.

For BSNL to be eligible for guarantee of Rs 8,500 crore, and MTNL to be eligible for guarantee of Rs 6,500 crore, the state-run telcos will have to pay a 1 per cent fee each. It has also been indicated that the guarantee will cover only the principal amount and