Govt Asks BSNL, MTNL To Identify Assets Worth Below Rs 10 Crore For Monetisation: Report

The Department of Telecommunications has asked BSNL and MTNL to identify core and non-core assets with a value of up to Rs 10 crore for monetisation

Chief general managers (CGMs) of all circles have been requested to list the assets that are under the BSNL board's purview and that can be quickly monetised, according to the report. ( Image Source :Getty )

State-owned firms BSNL and MTNL have been asked by the Centre to identify a list of assets that can be monetised. According to a Financial Express report the Department of Telecommunications (DoT) has asked BSNL and MTNL to identify core and non-core assets with a value of up to Rs 10 crore for monetisation. The report citing people aware of the matter also said that BSNL is likely to identify at least 10 such properties in this range in each circle. 

Even as the government has given BSNL and MTNL an Rs. 1.64 lakh crore revival package, asset monetisation is essential for them to pay off debts and meet capital expenditure obligations, the report noted. 

Two government sources told FE, chief general managers (CGMs) of all circles have been requested to list the assets that are under the BSNL board's purview and that can be quickly monetised. The CGMs have been given roughly three months to finish the assignment, and based on their performance, BSNL will share the DoT's monetisation target.

In 2019, when the government approved the first revival package for BSNL and MTNL, it also gave its nod to monetise assets. Assets with a value of less than Rs 10 crore can be monetised without the approval of the Group of Ministers (GoM). On the other hand, assets between Rs 10 crore and Rs 100 crore will need GoM approval.

The standing committee on communications and IT was informed by DoT in February that DIPAM had authorised the sale of MTNL assets worth Rs 5,158 crore and BSNL's asset worth Rs 18,200 crore. The process has been slowed down, nevertheless, by problems with title ownership of assets and authorisation from local or state governments, the report noted. 

The DoT also informed the parliamentary panel that no eligible bids had been submitted for the four BSNL assets; as a result, the company will review the auction's terms and circumstances and withdraw the bids.