
The Indian government has pledged to pay the bond interest dues of Mahanagar Telephone Nigam Limited (MTNL) by Wednesday. This move follows assurances from the Department of Telecommunications (DoT) to prevent any default that could trigger undesirable financial consequences. According to DoT officials, the necessary funds will be deposited in the designated trust and retention account at least three days before the due date.
This proactive measure bolsters confidence among investors and stakeholders in the telecommunications sector. The government’s intervention comes shortly after India Ratings and Research (Ind-Ra) decided to monitor MTNL closely, given the looming threat of an interest payment default. The action is a guarantee to uphold MTNL’s financial commitments and ensure stability within the state-run telecom company.
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