State-run telecom companies BSNL and MTNL have decided to prioritize selling their land assets, worth over Rs 1 lakh crore, to government organizations. These include both central and state government bodies. If these organizations do not need the land, the properties will be auctioned to private companies, according to a knowledgeable official.
Selling to government departments is preferred because it avoids legal complications and is straightforward. Recently, BSNL sold a property in Lucknow to the Income Tax department for about Rs 229 crore, matching the market value.
The official clarified that selling to government departments doesn’t mean selling at reduced prices; the properties are sold at market value without the need for auctions.
So far, BSNL has raised Rs 1,600 crore by selling properties to both government and private entities. The company aims to raise Rs 20,000 crore over the next 4-5 years through land sales. Property consultants see this as a good move, given the current strong real estate market in key cities like Mumbai, Bengaluru, Delhi, and Hyderabad.
BSNL and MTNL properties are in prime locations with high commercial and residential potential, making them very attractive to developers and investors.
Recently, telecom secretary Neeraj Mittal wrote to all ministry secretaries and state chief secretaries about these available properties. BSNL has even created a website listing the properties for sale.
Mittal mentioned that this initiative helps government organizations easily acquire needed properties from BSNL and MTNL. However, the sale of these land assets has been slow. The government has urged both companies to speed up the process by making detailed, properly valued lists of available land.
Land sales are crucial for helping BSNL and MTNL recover financially. The government has been working to improve their operations. In 2019, a revival package worth around Rs 69,021 crore was given to reduce operating costs. Another package worth Rs 1.64 lakh crore in 2022 aimed to provide fresh capital, restructure debt, and support rural telephony.
Thanks to these efforts, BSNL and MTNL have been making operational profits since 2020-21. Additionally, in June 2023, the government approved the allocation of 4G/5G spectrum to BSNL, with a total investment of around Rs 89,047 crore through equity infusion.
