Government directs BSNL and MTNL to identify low-value assets for sale

Department of Telecommunications (DoT) has instructed state-owned companies BSNL and MTNL to identify core and non-core assets with a value up to ₹10 crore for monetisation, as per a report by Financial Express.

At least ten such properties in this range are likely to be found by BSNL in each circle. Even if the government has given BSNL and MTNL a ₹1.64 lakh crore revitalization package, asset monetisation is essential for them to pay off debts and meet capital expenditure obligations.

The chief general managers (CGMs) of all circles have been requested to list the assets that are under the BSNL board's purview and that can be quickly monetized. The CGMs have been given roughly three months to finish the assignment, and based on their performance, BSNL will share the DoT's monetisation target.

As of February, the BSNL board has approved transaction advisors for nine properties, with total indicative value of around ₹50 crore.

In addition, the BSNL board requested Group of Ministers approval for 14 properties with a value of between ₹10 and ₹100 crore. The DoT informed the parliamentary panel that the approximate market value of these 14 assets is ₹600 crore.

While the total asset value for BSNL remained unavailable, MTNL has a base of assets with a value of roughly ₹30,000 crore, as reported by Financial Express