MTNL plans Rs 350.72 crore asset sale as part of revival push

The state-owned telecom operator Mahanagar Telephone Nigam Limited (MTNL) has informed stock exchanges of its plan to sell residential real estate in Mumbai’s Bandra Kurla Complex (BKC). The move forms part of a broader effort to monetise MTNL’s assets amid ongoing financial pressures.

MTNL has struggled with operational inefficiencies, rising debt, declining revenues, and a sustained loss of subscribers, limiting its ability to service liabilities or invest in growth. In response, the government has opted to monetise non-core and non-performing land assets to raise funds and reduce debt.

As part of this strategy, MTNL’s board has approved the sale of residential property valued at ₹350.72 crore to the National Bank for Agriculture and Rural Development (NABARD). The property spans 2,680 square metres and comprises 28 residential apartments. The transaction is expected to be executed either as a direct sale to NABARD or through a government-to-government arrangement.

Overall, the monetisation of MTNL’s assets is projected to generate Rs 4,753 crore for the government, along with Rs 900 crore for Bharat Sanchar Nigam Limited (BSNL).

Despite these challenges, the government has stated that it does not intend to shut down either MTNL or BSNL. Instead, efforts are underway to revitalise both entities and improve operational efficiency. Asset monetisation is a key component of the government’s broader telecom revival package.

BSNL, in particular, has shown signs of improvement in recent quarters. The company has reported profits for several consecutive periods and has added new subscribers at a time when private telecom operators have been losing customers. Many users in India are opting for BSNL as a secondary SIM, attracted by its more affordable pricing.