Government policies led to financial chaos in MTNL: Congress

The Congress on Thursday blamed the BJP for the systematic neglect of public sector companies such as BSNL and MTNL, saying the government policy has resulted in a financial chaos.

Addressing a press conference at the party headquarters, Congress spokesperson Pawan Khera said, "The BJP government need to focus on some critical Public Sector Undertakings. There has been a systematic neglect and deliberate incapacitation in state-owned MTNL and BSNL."

The BJP government's policy has resulted in complete financial chaos in MTNL, he said. The Congress leader said the latest independent audit report of MTNL reflects that the PSU is on the verge of shutting down. 

He said MTNL's net worth has been fully eroded and the current liabilities have exceeded the current assets substantially. "It is doubtful that the company can continue." 

The Congress leader claimed that under Congress-led UPA government in 2013-14-MTNL posted net profit of Rs 7,838 crore while under the BJP government in 2019, MTNL is reeling under a net Loss of Rs 3,390 crore.

"The BJP government's policies are responsible for a total loss of Rs 11,228 crore in the past five years," he said, adding the revenues during 2019 came down by 16 per cent at Rs 1,987.80 crore versus last year's.

Khera said the MTNL's total liabilities during the financial year 2018-2019 stood at Rs 14,601.82 crore, while the net worth of the company is negative Rs 9,918.33 crore.

Asking the govertnment to take immediate steps so that MTNL/BSNL start their 4G/5G services, Khera said, "The BJP government should consider recapitalization package for MTNL/BSNL." IANS