# Govt halts MTNL’s Mauritius exit on strategic grounds

2026-08-17T02:12:24+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The government has paused Mahanagar Telephone Nigam Ltd's (MTNL) plan to sell its Mauritius telecom unit, prioritising India's strategic presence on the island over debt-driven asset sales, livemint.com reports. The external affairs ministry blocked the sale citing geopolitical significance, even as MTNL's total liabilities have crossed Rs 37,000 crore and all its bank loans have turned non-performing assets. The company's board had cleared the exit in August 2024 to monetise non-core assets and pay down debt. MTNL's Mauritius arm, operating under the CHiLi brand, generated about Rs 79 crore revenue in the year ended March, down 3% from a year earlier, with losses rising to Rs 6.5 crore. "As of now, there is no plan to sell stake in the Mauritius entity," a government official told livemint.com. Over 10 MTNL employees are on deputation in Mauritius. The unit has no debt and is planning to launch 5G services, according to the telecom department's annual report. Former Trai principal advisor Satya N. Gupta suggested the government could sell 49% to Indian investors while retaining a 51% controlling stake, using proceeds for BSNL expansion or repaying MTNL debt. MTNL, now managed by BSNL, reported a net loss of Rs 842 crore in the June quarter. Communications minister Jyotiraditya Scindia told Lok Sabha last month that MTNL holds about Rs 50,000 crore in non-core assets against total liabilities of approximately Rs 40,000 crore.

## Coverage

- livemint.com <https://www.livemint.com/news/mtnls-mauritius-exit-on-hold-as-india-weighs-strategic-interests-bsnal-telecom-11786865390292.html>

This story was synthesised by AI from the source linked above.

Tags: BSNL, Department of Telecommunications, External Affairs Ministry, Jyotiraditya Scindia, Mauritius, MTNL
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How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/
