Wednesday, 13 August 2014

Navrantna status of MTNL may be extended by a year

An inter-ministerial committee headed by the Department of Public Enterprises (DPE) is planning to extend the Navratna status of Mahanagar Telephone Nigam Limited (MTNL) by another year. The Department of Telecommunications (DoT) is of the view that the extension of Navrantna status will help in the company’s revival while supporting its management in raising capital through loans or other measures from the market.
The PSUs with Navaratna status are delegated more powers in the areas of capital expenditure, equity investments, organisational restructuring and raising debt from the domestic capital markets and borrowings from international markets.
MTNL had reported net profit of Rs 78.25 billion in the 2013-14 after consequtive net losses for the previous three years. The profit was mainly due to write back of provisions on account of pensionary liabilities and spectrum amortisation costs, provided by the government for the company’s revival.

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