In a significant move aimed at reducing the debt burden of public sector telecom giants, Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL), the Department of Telecommunications (DoT) has identified approximately 600 land parcels and buildings for outright sale. These assets are expected to generate over Rs 20,000 crore.
Communication to Government Departments
In a communication dated May 21, DoT Secretary Neeraj Mittal addressed all secretaries in central ministries and chief secretaries of states and Union Territories. Mittal informed them that BSNL has created a website listing all properties available for sale. He urged these officials to publicize the website widely within their departments and associated public sector undertakings (PSUs).
“I would request you to issue instructions for wide publicity of the website in various departments/PSUs/organizations under your ministry. This would help Govt. organizations, who are in need of such properties in availing benefit from the scheme of direct sale from PSU to govt organisation,” Mittal stated in his letter.
Strategic Locations and Key Properties
BSNL and MTNL, both under the administrative control of the DoT, have substantial asset bases spread across prime locations in India. MTNL’s properties, located primarily in Delhi and Mumbai, include notable sites such as Connaught Place in New Delhi and the MTNL Telephone House in Prabhadevi, Mumbai. Other prominent properties are situated in Powai, Andheri, Bandra, Mulund, Vashi, and Worli in Mumbai.
Monetisation and Financial Revival Plans
The decision to monetize these properties comes as part of the government’s broader strategy to revitalize BSNL and MTNL. The Union Cabinet had approved a revival plan in 2019, which included the monetization of surplus land and building assets. Last year, the DoT informed the parliamentary standing committee on communications and IT that the Department of Investment and Public Asset Management had approved the monetization of BSNL assets worth Rs 18,200 crore and six MTNL properties valued at Rs 5,158 crore.
Government Revival Packages
To bolster the financial health of these telecom PSUs, the government has implemented several revival measures. In 2019, a revival package of Rs 69,021 crore was allocated, aimed at reducing operating costs. This was followed by another substantial package in 2022, amounting to Rs 1.64 lakh crore, which focused on injecting fresh capital, debt restructuring, and funding for rural telephony.
The identification and sale of these 600 land parcels and buildings are crucial steps in the government’s plan to alleviate the financial distress of BSNL and MTNL. By leveraging these assets, the government aims to significantly reduce the debt burden of these PSUs, ensuring their sustainability and continued service delivery in the telecom sector.
