PSU stock surges 9% amid reports of Cabinet approving ₹6,000 crore package for 4G expansion

Shares of Mahanagar Telephone Nigam Ltd. (MTNL) are trading with gains of up to 9% on Monday, February 10. The upmove in the stock price came amid reports that the Union Cabinet has approved a financial package worth ₹6,000 crore to accelerate the 4G network expansion of Bharat Sanchar Nigam Limited (BSNL) and MTNL. The stock is trading at ₹57.50.

The stock of the state-run telecom operator has risen 13% in just three trading sessions. With today’s gain, MTNL shares have gained 23% in the last one month.

This funding is expected to support both state-owned telecom companies in strengthening and expanding their network infrastructure.

Sources told CNBC Awaaz that the approved funds will be used to enhance BSNL and MTNL’s 4G network coverage across the country.Under the plan, around one lakh 4G sites will be set up to improve connectivity and ensure better network services for consumers.

The report also highlights that to fully implement the expansion, an additional ₹6,000 crore will be required. The government has already provided financial support of ₹3.22 lakh crore to BSNL and MTNL through three separate revival packages.

As part of the initiative, BSNL and MTNL have signed a 10-year agreement for 4G network sharing. This collaboration aims to optimise resources and enhance service delivery for customers.

The report further said that this move will strengthen BSNL and MTNL’s position in the telecom sector, enabling them to compete with private players and contribute to improving digital connectivity across India.In a recent interaction with CNBC-TV18, Department of Disinvestment and Public Asset Management (DIPAM) secretary Arunish Chawla spoke about the asset monetisation for both MTNL and BSNL.

“We are going to help MTNL and BSNL in monetising whatever assets they have so that the value that is locked in can be redeployed, liabilities are cleared and we can re-energize the sector,” Chawla said.

“Touchwood!” was Chawla’s response when CNBC-TV18 Managing Editor Shereen Bhan asked whether the process will be completed in financial year 2026.

The state-owned, debt-ridden MTNL was declared a Non-Performing Asset by most state-run lenders in October 2024.

Back then, CNBC-TV18 had reported that banks have an exposure worth ₹7,925 crore towards MTNL, with total dues amounting to nearly ₹32,000 crore. This also includes short and long-term debt.

Since 2019, the government has invested approximately Rs 3.22 lakh crore in BSNL and MTNL through three revival packages.

Shares of MTNL are currently trading 6.30% higher at ₹55.70. The stock has halved from its earlier peak of ₹101.5.