The state-run telecom operator, Mahanagar Telephone Nigam Limited will get financial assistance from the government to meet its tax liabilities. In this regard, the government has approved the proposal of the Department of Telecommunications (DoT) to provide financial support to MTNL to meet its liabilities from the imposition of minimum alternate tax (MAT).

The objective of the approval is to provide a one-time financial support to MTNL for its MAT liabilities during 2014-15 through the budgetary provisions of the government. MTNL had reported a profit of Rs 23.48 billion for 2013-14, resulting in a MAT liability of Rs 4.92 billion.

The financial support will help the telecom provider to operate competitively in the telecom market while arranging funds to meet its basic financial commitments.