Mahanagar Telephone Nigam (MTNL) has received shareholders approval to raise up to Rs 17,571 crore through government-guaranteed debt bonds on private placement basis. The company’s shareholders also enhanced power of the board to borrow up to Rs 35,000 crore from banks and other financial institutions.
The resolution to raise the borrowing powers of the board from Rs 30,000 crore to Rs 35,000 crore received 99.85 per cent votes in favour. 99.85 per cent shareholders voted in favour of the resolution to offer or invite subscriptions for government guaranteed, unsecured, listed, redeemable Non-Convertible Debentures (NCDs) in the nature of bonds, in one or more series I tranches, aggregating up to Rs 17,571 crore on private placement basis.
MTNL was set up by the Government of India to upgrade the quality of telecom services, expand the telecom network, and introduce new services and to raise revenue for telecom development needs of India's key metros -- Delhi and Mumbai.
