Mahanagar Telephone Nigam (MTNL), the state owned telecom firm which operates in Delhi and Mumbai, will be receiving financial support for its liability arising from levy of Minimum Alternate Tax (MAT). The Cabinet Committee on Economic Affairs (CCEA) has given its approval for a proposal of the Department of Telecommunications (DoT) to provide financial support to the company.
The Government's recent decision, which includes payment of pension to erstwhile government employees absorbed in MTNL and who opted for combined service pension and financial support on surrender of Broadband Wireless Access (BWA) spectrum has earned a book profit of Rs 2348.49 crore for the FY 2013-14, resulting in a minimum alternate tax liability of Rs 492.26 crore.
This decision taken by the government will help MTNL to arrange finances in order to meet its basic financial commitments like operations and maintenance of their telecom network along with keeping it afloat in the highly competitive telecom sector.
