The government will ensure that MTNL does not default on its bonds, said Communications Minister Jyotiraditya Scindia on Thursday. He also announced the upcoming establishment of a project management unit (PMU) for BSNL, which will be monitored daily for its 4G deployment progress.
The PMU, in collaboration with Tata Consultancy Services, Tejas Networks, and C-DOT, will oversee BSNL’s deployment of an indigenous 4G network. “We are forming a PMU, and I have mandated them to set daily targets, not monthly or weekly ones. These daily targets will be monitored by the secretary and myself,” Scindia stated at the India Mobile Congress 2024 theme launch event. He further assured, “We are on track with the 100,000 radio access networks (RANs) we need to have in place.”
Additionally, the government has confirmed the transfer of MTNL operations to BSNL and will proceed with asset monetization to pay off MTNL’s liabilities. “In the interim, as we monetize assets and address upcoming bond maturities, the sovereign guarantee bonds will remain secure. The Government of India stands behind these bonds, ensuring there will be no default,” Scindia said.
Scindia’s comments are significant as the government recently deposited Rs 92 crore to clear immediate bond interest dues for MTNL ahead of the July 20 deadline. Earlier, MTNL had informed stock exchanges of insufficient funds.
BSNL is currently deploying its 4G network across the country using domestic technology, which Scindia highlighted as a source of national pride.
Regarding the Telecom Act rules, Scindia stated that the government would implement all regulations within 180 days.
The Department of Telecommunications (DoT) also announced a scheme on Thursday to reimburse testing and certification costs for startups and MSMEs, with an outlay of Rs 25 crore. The government will reimburse up to Rs 50 lakh of the costs for certifications and testing.
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