The central government is preparing to raise up to Rs 6,000 crore during the current financial year by monetising surplus properties belonging to debt-ridden Mahanagar Telephone Nigam Limited (MTNL). The proposed exercise is aimed at generating funds to help the state-owned telecom operator meet part of its substantial financial obligations.
According to a report citing officials familiar with the development, properties worth approximately Rs 6,000 crore have been identified and the sale process has reached an advanced stage. The government is also working on a pipeline of additional MTNL assets that could be monetised over the next two years.
Five properties owned by MTNL in Mumbai, with an estimated combined value of nearly Rs 4,000 crore, have already received clearance from the Alternative Mechanism (AM), an authority empowered by the Union Cabinet to approve such transactions. The National Land Monetisation Corporation (NLMC), the government’s dedicated asset-disposal agency, will manage the exercise.
Separately, an inter-ministerial group comprising officials from the Department of Public Enterprises under the Finance Ministry and the Department of Telecommunications has recommended another batch of MTNL properties worth Rs 1,100 crore for Cabinet approval.
Rising liabilities drive asset-sale plans
The proposed monetisation comes amid MTNL’s mounting financial difficulties. Its total liabilities reached approximately Rs 40,000 crore in FY26, while the company defaulted on loan repayments to several public sector lenders, including State Bank of India, Punjab National Bank, Bank of India and Union Bank of India.
For FY26, MTNL recorded a net loss of Rs 3,102 crore against total income of Rs 1,469 crore. During the year, it generated Rs 419 crore through the sale of two properties: one in Mumbai to NABARD and another in New Delhi to the Bihar government.
Once the Cabinet grants approval, NLMC will approach potential purchasers. Properties sought by government departments may be transferred through private placement, while other assets are likely to be offered through auctions to private buyers.
Established in 2022 under the Finance Ministry, NLMC handles the monetisation of surplus land and buildings held by central public sector enterprises and government organisations. It appoints independent valuers and works with the government to determine reserve prices before proceeding with sales.
Source: Business Today
