BSNL and MTNL: Public Sector Units on the Brink of a Financial Downturn
Financial Distress of BSNL and MTNL
BSNL and MTNL have been enduring severe financial distress, marked by substantial government funding amounting to Rs 3.22 lakh crore since 2019. Despite these efforts, losses persist.
Debt Defaults and NPA Risks
The alarming situation escalates as MTNL has begun defaulting on loans and bond payments.
- Five debt defaults
- Two NPAs emerging
- 100% value erosion
These challenges primarily stem from mismanagement and inability to adapt within a competitive telecom landscape.
The Future of Public Sector Units
The implications of this crisis extend beyond the companies themselves, affecting the broader economy.Immediate intervention is crucial to salvage what remains of these essential public sector entities.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.