Mahanagar Telephone Nigam Limited (MTNL) has submitted a proposal to the Department of Telecommunications (DoT) for its revival. This comes after the company was declared as a ‘sick’ public sector unit by the government.

MTNL plans to raise Rs 5 billion through a short-term loan in 2015-16, the proceeds of which are likely to be used for expansion of network. Overall, Rs 8.05 billion will be utilised as capital expenditure in 2015-16 for both network upgradation and for enhancing its data services.

The company had reported a profit of Rs 78.21 billion in 2013-14. However, the profit was on account of exceptional items or write back of provisions on pension liabilities and amortisation of spectrum costs of Rs 116.21 billion. Prior to this, it had been making operational losses for three years.