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The Indian government is moving forward with plans to monetize Bharat Sanchar Nigam Limited's (BSNL) prime land assets, even though the company reported a profit of INR 262 crore in the third quarter of fiscal year 2024-25-the first since 2007. The National Land Monetisation Corporation (NLMC) has initiated the valuation process for approximately 35,591 square metres (8.7 acres) of BSNL's freehold land in five southern cities. This move is part of a broader strategy to reduce the debt of state-run telecom firms and generate resources for BSNL's revival.
Bharat Sanchar Nigam Limited (BSNL), a state-run telecom company that has just turned a profit again, owns substantial land holdings that the Indian government has started to sell. The National Land Monetisation Corporation (NLMC) has called for applications to value approximately 35,591 square metres (roughly 8.7 acres) of BSNL's prime freehold land and buildings located in five southern cities: Hyderabad, Bengaluru, Kozhikode, Ernakulam, and Mangalore. The valuation process is expected to conclude shortly, with international property consultants such as CBRE South Asia, KPMG, and Deloitte among those invited to submit proposals. Advertisement
BSNL reported a profit of INR 262 crore in the third quarter of fiscal year 2024-25, marking its first return to profitability since 2007. The Department of Telecommunications had projected that BSNL would achieve profitability in fiscal year 2026-27, with an anticipated profit of INR 558 crore, driven by the expected increase in revenues from the launch of 4G and 5G services. For fiscal year 2027, the department projects BSNL's revenues to reach INR 33,553 crore, a 73.5% increase from the INR 19,344 crore reported in fiscal year 2024.
The government's decision to monetise BSNL's land assets is part of a broader strategy to reduce the debt of state-run telecom firms and generate resources for BSNL's revival. The NLMC, established to facilitate the monetisation of non-core assets of public sector enterprises, is expected to advise on the monetisation of approximately 5,000 acres of land from various public sector undertakings, including BSNL, MTNL, BPCL, and others. The defence ministry is also considering using the NLMC to monetise about 32,000 acres of land belonging to military farms and other defence properties.
Despite BSNL's recent profitability, the government is proceeding with its land monetisation plans. This approach reflects a broader trend of leveraging non-core assets to address financial challenges within state-run enterprises. While BSNL's return to profitability is a positive development, the government's decision to monetise its land holdings indicates a continued focus on financial restructuring and resource generation.
The government's move to monetise BSNL's land assets, despite the company's recent return to profitability, underscores a strategic approach to financial restructuring. By leveraging non-core assets, the government aims to reduce the debt of state-run telecom firms and generate resources for their revival. This decision highlights the ongoing efforts to modernise and sustain public sector enterprises in an increasingly competitive telecom market.
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