A Guide to Effective Asset Monetisation in Telecom PSUs

Here is an overview of the asset monetization strategy for telecom PSUs like BSNL and MTNL in India in 2025:

Asset Monetization for Telecom PSUs (BSNL, MTNL)

1. New Framework for Surplus Asset Transfer
   • The government has established a framework allowing transfer of surplus land and buildings of telecom PSUs like BSNL, MTNL, and ITI to central government organizations without auctioning, aiming to speed up utilization and monetize idle assets.
   • Central government bodies get the Right of First Refusal to acquire assets within a 90-day window of notification, with pricing based on market valuation or circle rates determined by specialized agencies like CPWD and the National Land Monetisation Corporation (NLMC).
2. Monetisation Achievements
   • Since 2019, BSNL and MTNL have earned nearly ₹13,000 crore from asset monetisation, including land, buildings, towers, and fiber assets. For example, BSNL earned ₹8,204 crore and MTNL ₹258 crore from tower and fiber asset sales alone till early 2025.
3. Phased Sale and Debt Repayment Focus
   • MTNL is undertaking a phased asset sale program of 220 out of 280 non-core properties, mostly to repay mounting debts totaling over ₹33,500 crore. The sale process has been streamlined to avoid lengthy auctions, instead offering assets at market value directly to government entities before opening to private buyers.
4. Targeted Monetization Goals
   • For FY26, the government aims to monetize ₹900 crore and ₹4,573 crore worth of assets from BSNL and MTNL respectively, under the approved revival packages, with proceeds used for operational and debt servicing needs.
5. Upcoming Guidelines
   • Detailed guidelines for asset transfer, valuation, and timelines are expected shortly to ensure an efficient, transparent monetization process aligned with government policies.
6. Strategic Importance
   • Asset monetization is a critical pillar of the financial restructuring and revival of telecom PSUs, providing capital infusion, reducing debt servicing burdens, and facilitating operational turnaround in a challenging telecom market.