yes, the 8mbps plans on DSL only work upto a km the best, a variety of methods can be employed like channel bonding / phantom pair etc.
A lot also depends on the condition of the copper cable underground and the copper plant outside your house, copper degrades fairly quickly and without proper shielding it leads to high attenuation and low SNR.
The main problem however is not with the technology, i.e.
ADSL2+, its with the condition of the copper lines and the distance, the distance is not actually just the physical LOS- line of sight distance but it is the length of the cabling from the exchange MDF to the copper plant and to your home. within the exchange itself around 300m+ of wiring loops are there, thus add around 500m to your physical LOS to calculate actual line distance.
Most of the copper cabling has been done fairly early and yes you guessed it right, it has degraded quite a bit, also the mtnl DSLAM should support specific frequencies to give full 24mbps, which i don't think they do currently, but they are upgrading these as we speak, even in my colony they have installed a new DSLAM for the 8mbps plans. i think the plan is to go use these for ADSL2+ till 20mbps and then later shift to VDSL2 with vectoring on 17a/30a profile for 50mbits + and eventually g.fast for 1gbits/s/
line speed and stability also depend on your modem, some modems are able to negotiate lines upto SNRM of ~ 3dB which is quite low and hold it stable, in contrast the golden ratio for SNRM is considered to be ~ 10dB for a stable connection. what also plays a part is DLM which is also known as digital line management, when your connection is initially set-up or your sync speed is changed the DLM kicks in and negotiates a tradeoff between speed and SNRM for a stable connection, this goes on for 15-25 days and will reset your connection quite a few times to achieve a proper figure.
mtnl has recently started expanding its broadband operations, i have seen new OFC cables being laid near my house to another residential colony and mtnl will start providing FTTc there by next month.
The new exchange will probably have a OFC connecting to the DSLAM near your house and the copper length will not be more than 1km, with new copper. I think the govt is spearheading MTNL in the right direction and the way these guys are going, i won't be surprised if we see a fup of 2mbps unlimited for 1200~1500s a month by the end of next year along with 100mbps plans for delhi.
right now, the fastest mtnl delhi plan is for 3500 50ul/50dl with 300gb data and 2mbps post FUP, if you compare that with ACT corporate plan which has 100mbps with 600gb data with 3mbps FUP for 7000, i think MTNL has done quite a lot of catching up, considering the fact that bandwidth is more expensive in Delhi and the fact that they are offering 50mbps symmetrical is a pretty big deal.