Government Plans to Monetise MTNL Assets Worth Up to ₹6,000 Crore

The central government is reportedly preparing to monetise non-core properties owned by MTNL and expects to raise up to ₹6,000 crore during the current financial year (FY27), as per the Business Standard report. 

The process has already moved ahead, with properties identified for sale. The government is also preparing a larger pipeline of MTNL assets that could be monetised over the next two years. 

₹4,000 Crore Mumbai Properties Approved 

Five MTNL properties in Mumbai, together valued at around ₹4,000 crore, have already received approval from the Alternative Mechanism. 

Another set of assets worth ₹1,100 crore has been recommended for Cabinet approval by an inter-ministerial group. 

MTNL Faces ₹40,000 Crore in Liabilities 

The planned sale comes as MTNL continues to face heavy financial liabilities. Its total liabilities stood at around ₹40,000 crore in FY26. 

The company reported a net loss of ₹3,102 crore during the year. Its total income stood at ₹1,469 crore. MTNL has also defaulted on repayments to several public sector banks. 

Earlier Property Sales Raised ₹419 Crore 

MTNL had already sold two properties during FY26 and raised ₹419 crore from those transactions. 

A property in Mumbai was sold to Nabard. Another property in New Delhi was sold to the Bihar government. 

NLMC to Handle the Sale Process 

The National Land Monetisation Corporation will oversee the proposed monetisation. After approvals, government entities can buy properties through private placement. 

Properties that do not receive interest from government bodies can be offered to private buyers through auctions. 

Read More: Government Pushes for Greater Use of Indigenous AI Models in Critical Sectors! 

Conclusion 

The government is now looking at a larger round of MTNL property sales. With up to ₹6,000 crore of assets identified, the monetisation exercise is set to become an important source of funds as the state-owned telecom company continues to deal with liabilities of around ₹40,000 crore. 

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