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Informist, Friday, Nov. 22, 2024

 

By Priyasmita Dutta

 

NEW DELHI - Following repeated recommendations from the telecom ministry, the Department of Public Enterprises has decided to monetise land assets of debt-riddled Bharat Sanchar Nigam Ltd. and Mahanagar Telephone Nigam Ltd by the end of the current financial year, while keeping monetisation of other public sector units' land assets on the back burner, a senior finance ministry official said Friday. The monetisation of assets of these two PSUs will happen in tranches, with the upcoming tranche expected to raise around INR 3 billion. 

 

"The government will float the tender to auction BSNL and MTNL's land in another three months...second half of February," the official told Informist. Typically, the auction takes place over three weeks. While the government is hopeful to close the deals by the end of March, the payment will only come in FY26, the official added. The Centre is looking to reduce the debt of both the telecom PSUs through land monetisation. Currently, the government is accepting bids for the sale of a few acres of land of these two PSUs, with the expectation to raise INR 2 billion-INR 3 billion. 

 

The government has been trying to monetise non-core assets of public sector undertakings to let go of properties with little or no business activities. The push to monetise these unused assets also came as a fallout of the government's little success in privatisation and disinvestment of state-owned entities. The National Land Monetization Corp, a special purpose vehicle set up in 2022, was in fact formed to undertake monetisation of surplus land and assets of public sector enterprises.

 

Though the National Land Monetization Corp is prioritising the sale of BSNL and MTNL's land parcels, it is only a small portion of the huge surplus land of these PSUs that needs to be monetised. BSNL has assets spread across the country and MTNL has properties in Delhi and Mumbai, most of which are at prime locations. 

 

Last year, the Department of Telecommunications had informed the parliamentary standing committee on communications and information technology that the Department of Investment and Public Asset Management had approved the monetisation of BSNL's assets worth INR 182 billion and six MTNL properties worth INR 51.58 billion.

 

While the pipeline is huge, the sale of BSNL and MTNL's land is seeing limited success owing to legislative complications and permissions required from state governments or local bodies, the official said. Though there are complications involved in BSNL and MTNL's properties, it is necessary to mention that National Land Monetization Corp has so far seen limited success in its efforts to sell idle or surplus land with state-owned companies.

 

Earlier, Informist had learnt from a senior finance ministry official that the government was looking to sell land parcels of Air India, Indian Drugs and Pharmaceuticals Ltd. and the second tranche of land belonging to Rashtriya Ispat Nigam Ltd. after the general elections. However, even five months since the elections, none of the deals have gone through. "They are in the process but none (auction deals) have closed after the elections," the official said.  End

 

Edited by Vandana Hingorani

 

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