The government led by Prime Minister Modi is gearing up to raise around Rs 1000 crore in the financial year 2025-26 to financially support state-run telecom giants BSNL and MTNL. According to a report by MoneyControl, this revival plan hinges on monetising land assets owned by the two telecom firms.
Monetisation of Land Assets Underway
The Department of Public Enterprise (DPE) under the finance ministry is spearheading this fundraise initiative, which involves selling or leasing prime land parcels owned by BSNL and MTNL. These parcels are estimated to be worth approximately Rs 1000 crore. The exact figure will depend on the valuation and clearance of state-level procedures.
An official source highlighted that BSNL has two or three land parcels under consideration. However, the process is expected to be complex as land is governed by state laws, making it necessary for the centre and concerned states to work together for seamless execution.
BSNL and MTNL’s Financial Struggles
The move is part of a broader revival strategy for BSNL and MTNL, both burdened with rising operational costs, a shrinking customer base and mounting debt. MTNL has defaulted on loans worth Rs 8346 crore across seven public sector banks, while its total liabilities stand at Rs 33000 crore as of March 2025. BSNL’s debt stood at Rs 23297 crore as of November last year.
High-Level Meeting to Prevent NPA Tag
To avoid further financial deterioration, a crucial meeting led by Cabinet Secretary TV Somanathan is scheduled for May 16. The agenda includes discussions with heads of public sector banks to prevent MTNL’s loans from being classified as non-performing assets (NPAs).
Conclusion: A Strategic Step Towards Revival
The land monetisation strategy could offer immediate relief for BSNL and MTNL, but its success will depend on state cooperation and procedural efficiency. With high stakes involved, the coming months will reveal how effective this financial lifeline turns out to be.
