Centre to pick up bond dues tab for MTNL

Mumbai: The government will step in to pay interest on Mahanagar Telecom Nigam (MTNL) bonds, allaying fears of a sovereign default after the state-owned telco failed to transfer sufficient funds to an escrow account on schedule, said people with knowledge of the matter.

The borrowers will be paid according to the rules laid out by the Department of Economic Affairs, they said. “Whatever amount is due will be paid before the due date, which is July 20,” a senior official told ET on condition of anonymity.