Severe financial problems had forced Mahanagar Telecom Nigam Ltd (MTNL) to go slow on development projects, as a result of which they were not in a position to upgrade their network, said a Parliament Committee on Friday. “During the last three years, MTNL has made very limited investment in the network segment that had affected MTNL’s ability to provide quality services. The physical achievements of MTNL during 2014-15 have been far from satisfactory,” the Standing Committee on Information Technology report tabled in Lok Sabha on Friday said.

Under the item ‘Net new connections including landline, wireless local loop (WLL), cellular and broadband connections’, the target of achieving five-lakh connections was fixed at Budget estimates, which was reduced to 2.50-lakh at revised estimates, he said adding that the actual achievement till February was only 1,49,973.

The Committee also said that after reduction in MTNL’s debt liabilities due to government support, MTNL has been able to secure loan of ₹1,200 crore from IDBI, partially to meet capacity expansion requirement of projects during 2015-16 like in 3G network up-gradation, expansion of radio frequency network and backhaul.

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