Centre to pay MTNL's bond interest by Wednesday, says DoT officials

With this date having been passed, the government now has to step in and deposit the necessary funds in the designated trust and retention account at least three days before the due date

The government will come to the rescue of cash-strapped Mahanagar Telephone Nigam Ltd (MTNL) and ensure that its bondholders are paid the interest guaranteed to them, officials at the department of telecommunications (DoT) said.

The officials said that the government will deposit the necessary funds by Wednesday.

In July 2023, MTNL had raised Rs 2,480 crore ($296.97 million) through 10-year sovereign-guaranteed bonds at a semi-annual coupon rate of 7.59 per cent. While the latest interest payment is due on July 20, the financially beleaguered PSU last week informed the exchanges it was unable to make interest payments