Wednesday 19 November 2014

MTNL raises Rs 1,500 crore by selling bonds

Mahanagar Telephone Nigam (MTNL) has raised Rs 1,500 crore by selling bonds to institutional investors and the funds. The amount raised will be used for paying the debt, which stood at Rs 14,760 crore at the end of June this year.
The company has been losing market share over the last many years. MTNL’s market share has come down to 4.83 per cent as on May 2014 from 10.87 per cent in March 2009.
The government is taking various measures to revive the company. Last year in September, it was decided to refund about Rs 5,700 crore to MTNL which it has to pay for wireless broadband spectrum in Delhi and Mumbai in 2010.
MTNL was set up by the Government of India to upgrade the quality of telecom services, expand the telecom network, and introduce new services and to raise revenue for telecom development needs of India's key metros -- Delhi and Mumbai.

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