In a move aimed at accelerating the monetisation of MTNL’s surplus assets, the government has decided to bypass the traditional auction process for selling properties to state and central government bodies.
Instead, these entities will be offered MTNL assets at a "simple valuation," according to sources familiar with the development.
The shift in approach is designed to eliminate time-consuming bidding and complex valuation procedures that have often delayed asset sales by months.
The proceeds from these transactions will be directed towards reducing MTNL’s mounting debt burden, which stood at ₹33,568 crore as of March 31. This includes ₹8,346 crore in bank loans, ₹24,071 crore in sovereign-guaranteed bonds, and ₹1,151 crore in overdue bond interest payable to the Department of Telecommunications.
The asset monetisation plan will unfold in phases, with 220 out of 280 non-core MTNL and BSNL properties identified for sale.
These properties, spread across key metros such as Delhi and Mumbai, are currently undergoing valuation surveys, with initial estimates placing their worth at ₹6,000–7,000 crore.
The monetisation of MTNL’s surplus land and buildings is seen as a critical part of its revival plan.
The telco's financial distress has not only impacted its lenders — including State Bank of India, Punjab National Bank, Bank of India, UCO Bank, Punjab & Sind Bank, and Indian Overseas Bank — but also its employees, vendors, and pensioners, many of whom are still awaiting pending payments.
Meanwhile, MTNL employees have staged protests, urging the Department of Telecommunications to intervene and expedite the monetisation and revival process.
Earlier this month, NDTV Profit reported that the government had taken steps to streamline internal transfers of immovable assets owned by telecom PSUs like MTNL, BSNL, and ITI. A high-level meeting chaired by the Cabinet Secretary concluded with a decision to draft new guidelines to facilitate easier transfers between ministries and departments. This is expected to boost restructuring efforts and optimise public sector resources.
While the simplified sale process will apply to public sector entities, the framework for selling assets to private buyers is still under discussion and will be finalised separately.