BSNL, MTNL Plan to Monetise Rs 1,000-Crore Land Assets This Fiscal to Ease Financial Pressure

 In a fresh move to strengthen the financial position of Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL), the government is looking to raise about Rs 1,000 crore during the current financial year by monetising land parcels owned by the two state-run telecom companies, an official source revealed.

This monetisation effort aims to reduce the mounting debt and improve liquidity for both telcos through the sale or leasing of select land assets identified by the Department of Public Enterprises (DPE) under the finance ministry.

According to the official, “The DPE will shortlist suitable properties for this initiative. BSNL has two or three land parcels under review. Combined, the land assets of BSNL and MTNL are valued at roughly Rs 1,000 crore and are expected to be monetised within this fiscal.”

The initiative forms part of a larger strategy to revive the financial health of BSNL and MTNL, which have been under severe stress due to increasing operational costs, a shrinking subscriber base, and rising debt levels. MTNL has notably defaulted on loans worth Rs 8,346 crore across seven public sector banks, with total debt exceeding Rs 33,000 crore as of March 31, 2025. BSNL’s debt stood at Rs 23,297 crore as of November 2024.

However, monetising land is complex since land is a state subject, requiring comprehensive documentation and clearances. “The process may take until this year or extend into the next,” the official said, highlighting the time-consuming nature of securing state government approvals, resolving legacy title issues, and ensuring proper paperwork.

Regarding BSNL’s assets, at least two land parcels have already been shortlisted for monetisation. While details on their exact location and size remain confidential, these properties are reportedly situated in commercially attractive areas that could draw strong investor interest. A similar, though smaller, exercise is underway for MTNL’s land assets.

Amid growing financial challenges, cabinet secretary TV Somanathan has convened a high-level meeting with major public sector banks to discuss measures preventing immediate adverse actions against MTNL.

Though BSNL is in a relatively better position operationally, it continues to face challenges due to years of underinvestment in network infrastructure and stiff competition from private players.

The government had earlier announced a revival package in 2019 for BSNL and MTNL, including sovereign guarantee bonds and voluntary retirement schemes, but progress has been slow and uneven. Asset monetisation is now seen as a critical lever for financial recovery.

The Rs 1,000-crore target, while modest compared to the companies’ total liabilities, faces execution risks. “Government land monetisation is complicated by fragmented documentation and multiple state-level approvals. The pace of realisation depends heavily on administrative efficiency and investor interest,” the official explained.

This effort aligns with the Centre’s broader asset monetisation strategy, which seeks to unlock value from underutilised public assets. Finance Minister Nirmala Sitharaman, in Budget 2025, announced a second asset monetisation plan targeting Rs 10 lakh crore for 2025-30, aimed at reinvesting proceeds into new infrastructure projects. The first plan, launched in 2021, had set a target of Rs 6 lakh crore by 2025.