- The central government has started the process of landholding of BSNL and MTNL.
- Both companies have been incurring losses continuously for the last several years.
New Delhi. The process of selling assets of Mahanagar Telephone Nigam Limited (MTNL) and Bharat Sanchar Nigam Limited (BSNL) i.e. asset monetization has been greatly accelerated. The central government has started the process of landholding of BSNL and MTNL. In its first phase, the Department of Investment and Public Asset Management (DIPAM) has entrusted consultancy firms CBRE Group, Jones Lang LaSalle (JLL), and Knight Frank to explore possibilities of selling properties in Corona Works. They will submit their report by the end of this month.
Property worth Rs 37500 thousand crores will be sold
MTNL and BSNL have to sell assets worth Rs 37500 crore. The property would include the company’s vacant land and buildings. The money received from this sale will be used to improve the company’s financial condition.
Revival plan was announced in October 2019, for the revival of
loss-making state-run telecom BSNL and MTNL, the central government approved a revival plan of 70,000 crores in October this year. This included the announcement of merger, sale of assets, and voluntary retirement (VRS) to employees of these two companies. The central government’s aim is to make the unit formed after the merger of the two companies into profitable units within two years.
Both the loss-making companies
BSNL incurred losses of about Rs 14,202 crore in 2018-19. There was a loss of Rs 7,993 crore in 2017-18. There was a loss of Rs 4,793 crore in 2016-17 and Rs 4,859 in 2015-16. The company has been running at a loss since 2010. At the same time, MTNL has recorded a loss in 9 years out of the last 10 years.