NEW DELHI: State-run telcos Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) have decided to give preference to government organisations, both in states and at the Centre, in selling their land assets worth over Rs 1 lakh crore.
Only in cases when such organisations do not require the land assets, the properties will be offered to private enterprises through auction, an official directly familiar with the details, said.
“The sale to government organisations is clean and smooth and does not have unnecessary litigation,” the official added.
Recently, BSNL sold one of its properties in Lucknow to the Income Tax department for around Rs 229 crore, which was the market value of the building.
“Selling to government departments does not mean that the rates are subsidized. We fix the market value for the properties. It’s only that the departments are getting the properties without an auction,” the official added.
So far, BSNL has raised Rs 1600 crore through sale of properties to government departments as well as private entities. The company plans to raise Rs 20,000 crore in 4-5 years through land monetisation.
Property consultants view the monetization of BSNL and MTNL land and properties in key cities of India as a strategic opportunity in the current realty market scenario.
According to realty industry experts, the timing of the monetization aligns well with a buoyancy in the property market.
Post-pandemic, all major commercial and residential property markets including Mumbai, Bengaluru, Delhi and Hyderabad have witnessed a resurgence. High-value land parcels in these cities are witnessing increasing interest from developers and investors seeking strategic locations for new projects.
BSNL and MTNL properties are located in prime areas with significant commercial and residential potential. The strategic location of these properties add considerable value, making them highly sought after.
Recently, telecom secretary Neeraj Mittal had written to all secretaries of the ministries at the Centre and chief secretaries of states regarding the land assets of both the telecom firms. BSNL has developed a dedicated website that contains the list of properties available for outright sale in various parts of the country.
“This would help government organizations in need of such properties in availing benefit from the scheme of direct sale from PSU to government organisation,” Mittal said in the letter.
However, the sale of land assets to the telecom PSUs has been a slow starter. A few months ago, the government pulled up both the firms for the slow pace of land monetisation. The two companies were asked to make a detailed list of land parcels, circle wise, with proper valuation as per the current market rate.
Land monetisation is one key area for reviving the ailing telecom firms. On its part, the government is making all efforts to improve the loss-making telcos’ operations.
In 2019, a revival package worth around Rs 69,021 crore was provided to BSNL and MTNL that brought down their operating costs. Another revival package amounting to around Rs 1.64 lakh crore in 2022 was focused on infusing fresh capital, restructuring debt, and viability gap funding for rural telephony.
As a result, BSNL and MTNL have started earning operational profits from 2020-21.
In addition, the union cabinet in June 2023 approved the allotment of 4G/5G spectrum to BSNL with the total outlay of around Rs 89,047 crore through equity infusion.
Dvok Buildcon has purchased agricultural land near Manesar and paid Rs 21.72 crore as stamp duty, according to the documents.
