A Guide to BSNL Land Assets Valuation Methodology Explained
Table of Contents
The BSNL land assets valuation methodology for BSNL land assets in 2025 follows a structured, tier-based approach designed to ensure fair market pricing and transparency, particularly in the context of asset monetization without auction.
Key Points of BSNL Land Assets Valuation Methodology:
- Tiered Valuation Responsibility Based on Asset Value
- For land/building assets valued up to ₹10 crore, BSNL, MTNL, or ITI themselves act as the valuation agency through internal assessment teams.
- For assets valued between ₹10 crore and ₹100 crore, the Central Public Works Department (CPWD) is the designated valuation agency.
- For properties valued above ₹100 crore, the National Land Monetisation Corporation (NLMC) conducts the valuation and determines market value.
- Valuation Basis
The market value is fixed using the higher of these benchmarks:- Valuation report by the assigned agency
- Circle rate or guideline value (ready reckoner rate) applicable in the respective area
- This ensures valuation reflects the current market conditions and statutory rates.
- Valuation Methodologies Employed
- Valuations consider approaches like Comparable Sales Method, Cost Approach, and Income Approach including Discounted Cash Flow (DCF) analysis where appropriate.
- Valuers assess ownership conditions, lease terms, restrictions, encumbrances, and capital works-in-progress impacting value.
- Transfer Procedure and Priority
- Once valued, assets are offered first to central government organizations who get the Right of First Refusal for 90 days.
- These organizations must register intent with earnest money deposit (2% of indicative value) and obtain internal approvals.
- If no government buyer emerges, assets may be sold to non-government buyers thereafter.
- Ongoing Large-Scale Valuation Efforts
- NLMC has engaged empaneled international property consultants to value approximately 35,591 sq. meters of BSNL land in five major southern cities.
- These valuations aid in monetizing BSNL’s real estate assets as part of its financial revival strategy.
This tiered, transparent valuation process facilitates faster asset monetization and capital generation for BSNL as it undergoes restructuring. Asset pricing aligned with market realities ensures confidence among government and private buyers alike.
