MTNL has reportedly raised Rs. 5 bn from various banks to clear the debts it had accumulated while paying for 3G and Broadband Wireless Access (BWA) spectrum licenses, last year.
Reports quoted MTNL CMD Kuldeep Singh as saying that, “Out of the total loan amount of Rs. 15 bn, we have raised Rs. 5 bn from various banks and for the rest of the amount, we are still in talks with them (banks).”
According to reports, MTNL had In July, invited (EoI) expression of interest from banks for long-term loans of Rs. 15 bn, with a floating interest rate for a seven year tenure. The loan will be raised in tranches, without any penalty and interest.
For acquiring spectrum of Delhi and Mumbai circles MTNL had taken a short-term loan of Rs. 70 bn last year, out of which it repaid Rs. 5.33 bn, while the remaining amount was converted into long-term debt, reports stated.
Reports further added that, Delhi and Mumbai saw the highest bids for BWA and were also the most expensive circles for 3G spectrum.