BSNL, MTNL to Monetise Land Assets Worth ₹1,000 Crore for Financial Relief

The central government is looking to raise around ₹1,000 crore in the current financial year by monetising land assets held by Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL). This is part of a larger plan to address the ongoing financial stress faced by the two state-run telecom companies, according to news reports.

As of 12:25 PM on May 16, 2025,  Mahanagar Telephone Nigam Ltd (MTNL) share price was trading at ₹43.93, a 2.93% increase, with a 2.56% decline over the past six months and a 19.03% increase over the past year.

Land Parcels Identified for Sale or Lease

The Department of Public Enterprises (DPE) under the Finance Ministry is coordinating the process. BSNL has shortlisted 2 to 3 land parcels for potential sale or lease. Together with MTNL’s land holdings, the total estimated value of assets being considered is approximately ₹1,000 crore.

Although the internal target is to complete the monetisation within FY26, officials have said that the process may take longer. Since land is a state subject, approvals from the respective state governments are required. Issues like documentation, land ownership verification, and title clarity are expected to slow down the timeline.

Debt Levels Remain High

BSNL had a debt of ₹23,297 crore as of November 2024. MTNL’s total liabilities stood at ₹33,000 crore as of March 31, 2025. The company has defaulted on loans worth ₹8,346 crore from 7 public sector banks.

Loan Defaults

Cabinet Secretary T.V. Somanathan has called a meeting with the heads of public sector banks on May 16 to discuss MTNL’s financial condition. The meeting is aimed at preventing any immediate adverse action, including the classification of its loans as non-performing assets.

Asset Monetisation Push

This fits into the government’s broader strategy to monetise public assets. In Budget 2025, a target of ₹10 lakh crore was set for asset monetisation between 2025 and 2030. An earlier plan launched in 2021 had aimed for ₹6 lakh crore by 2025.

Read more: BSNL, MTNL Earn ₹12,984 Crore From Monetisation; No Privatisation Planned

Conclusion

The plan to raise ₹1,000 crore through BSNL and MTNL land assets adds to attempts to manage the debt load of public sector telecom firms. Execution will depend on how quickly state-level hurdles are addressed.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.