EPFO Eyes BSNL and MTNL Properties to Expand Infrastructure Footprint

According to a report, the Employees’ Provident Fund Organisation (EPFO) is seeking to expand its physical infrastructure to cater to an anticipated increase in its subscriber base, from nearly 70 million to 100 million in the coming years. The move is part of a broader strategy to shift from rented offices to owning its premises across the country.

To achieve this, the retirement fund body is exploring opportunities to acquire offices, land, and buildings from 2 government-run telecom firms—Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL).

Discussion at the Central Board of Trustees Meeting

The matter was deliberated at length during the Central Board of Trustees (CBT) meeting held on 28 February 2025. Union Labour and Employment Minister Mansukh Mandaviya, who chairs the board, emphasised the need for government-to-government collaboration for the smooth acquisition of BSNL and MTNL assets.

“The Chairman remarked that the timely completion of capital projects is essential as it has been generally observed that it becomes very difficult to complete the projects which are delayed by more than 3 years due to cost overruns and price escalation,” the meeting minutes noted.

Coordinated Engagement with DoT, BSNL and MTNL

According to the report, EPFO stated in response to a written query that it has been actively enhancing its infrastructure by leasing or procuring land and buildings from central and state government bodies and their undertakings.

In continuation of these efforts, the Central Provident Fund Commissioner (CPFC) has approached the Department of Telecommunications (DoT) to designate an officer from the ministry, BSNL, or MTNL to collaborate with EPFO’s chief engineer. The goal is to compile a consolidated inventory of BSNL/MTNL assets available for sale or lease and ensure smoother coordination.

Asset Monetisation by BSNL and MTNL

The collaboration comes at a time when BSNL and MTNL are monetising their unused real estate assets. As per the report, BSNL has listed 5,208 separate vacant land and building assets across India for sale or rent, in addition to 536 upcoming properties.

Earlier in March 2025, the Union Minister of State for Communications, Pemmasani Chandra Sekhar, informed the Lok Sabha that BSNL and MTNL had earned ₹2,387 crore and ₹2,134 crore, respectively, through monetisation of land and buildings up to January 2025.

The 5-Year Perspective Plan of EPFO

This asset acquisition is part of a broader 5-year perspective plan adopted by the CBT in March 2023. Under the plan, EPFO aims to establish its own premises for all its offices and gradually reduce reliance on rented properties.

Between FY 2023–24 and FY 2027–28, EPFO intends to construct 21 zonal and 52 regional offices. This initiative is estimated to cost ₹2,250 crore, excluding an additional ₹750 crore currently being utilised for land acquisition and ongoing construction in states including Gujarat.

EPFO’s Current Operational Infrastructure

EPFO currently operates 283 offices nationwide, which include 21 zonal offices, 138 regional offices, 117 district offices, six training institutes, and its headquarters in Delhi. Out of these, 118 are situated in EPFO-owned buildings, while the remaining 165 function from rented premises.

The move to acquire government-owned real estate is expected to streamline this ratio in favour of permanent infrastructure, thereby improving operational efficiency and reducing long-term costs.

Read More: EPFO 2025: New Digital Rules for Faster Pension Claims, Home-Improvement Advances and More. 

Conclusion

According to the report, EPFO’s proactive approach to infrastructure expansion through government asset acquisition reflects strategic alignment between public sector entities. The initiative is also seen as a way to expedite project delivery and cater to the rising demand for EPFO services.

The success of this initiative will depend on inter-ministerial coordination, timely identification of viable properties, and efficient execution to avoid delays and escalating costs.

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