Govt continues to bail out BSNL

The government has now given a ₹19,000-crore sovereign guarantee to BSNL. A sovereign guarantee is a government’s guarantee that an obligation will be satisfied if the primary obligor defaults. Usually sovereign guarantees relate to payment defaults, but they can cover all kinds of obligations and commitments.

BSNL and MTNL put together have a Rs 60,000 crore debt. It may be recalled that the government had recently given ₹5,000 crore to BSNL, and has also promised the PSU spectrum in the 900 and 1,800 MHz bands.

CT Bureau