Ministry of Finance issues Sovereign Guarantee to BSNL & MTNL – The Department of Economic Affairs, Ministry of Finance, has issued a letter yesterday the 08th July, 2020, extending Sovereign Guarantee to BSNL and MTNL, for issuing long term bonds. The Sovereign Guarantee is for Rs.15,000 crore, out of which BSNL’s share is Rs.8,500 crore. In this letter, the following is stated in para no. iii :-
“Guarantee given by Government of India shall be non-transferrable and would cease to exist in case the ownership of the entity is transferred from Government of India….”