In a bid to financially stabilize Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL), the government is planning to raise around Rs 1,000 crore in the current financial year by selling and leasing of land parcels owned by the two state-owned telecommunications companies.
The monetization plan is aimed at easing the debt burden and improving liquidity for the telcos. The finance ministryās Department of Public Enterprises (DPE) would recommend suitable assets for the process.
āBSNL has two or three land parcels under consideration. The total land value from both BSNL and MTNL is approximately Rs 1,000 crore, which is likely to be monetized this year,ā a source aware of the developments told a business daily.
āLand is not an easy subject. It is a state subject. All the documents, everything has to be in place. BSNL will (complete the process) this year or it may even be next year. It will take time, it may not happen in one year,ā the official added.
The initiative is part of a broader plan to revive the financial viability of BSNL and MTNL, which have struggled for years amid rising operational costs, a declining subscriber base and mounting debt. The move comes at a time when both BSNL and MTNL are reeling under heavy debt.
As reported earlier, MTNL defaulted on loans worth Rs 8,346 crore across seven public sector banks, with its total debt obligations crossing Rs 33,000 crore as on March 31, 2025. BSNL recorded Rs 23,297 crore of debt on its books as of November 2024.
