As per reports in the media, the Parliamentary Standing Committee on Information technology has reported that MTNL, the telecom PSU providing services in Mumbai and Delhi, is not in a position to upgrade its network due to severe financial problems. It could only provide 1,49,973 landline/WLL/broadband connections against a target of 5 lakhs due to paucity of funds.
However MTNL has now been able to secure a loan of Rs. 1,200 crore from IDBI this year for upgrading of networks.