India, Aug. 19 -- The state-owned telecom provider, Mahanagar Telephone Nigam Limited (MTNL), has once again defaulted on its loan repayments. This time, a consortium of public sector banks has been left with unpaid dues amounting to Rs 8,659 crore (USD 990.48 million). The default includes a principal amount of Rs 7,794 crore and overdue interest of Rs 865 crore owed to lenders, including Union Bank of India, Bank of India, Punjab National Bank, and the State Bank of India.

MTNL has long struggled to generate sufficient revenue from its services and has faced persistent difficulties in expanding its subscriber base. For years, the company has relied heavily on government support to stay afloat. Given its current financial distress and s...