In Short:
Bharat Sanchar Nigam Limited (BSNL) plans to develop 71 land parcels, totaling 170 acres, through public-private partnerships, mainly in six states. The company aims to raise ₹20,000 crore over the next few years by monetizing its land. BSNL has previously sold properties for ₹1,600 crore and received significant government support to improve its financial situation.
Bharat Sanchar Nigam Limited (BSNL), the government-owned telecommunications provider, is currently exploring the potential development of 71 land parcels through a public-private partnership (PPP) model. These parcels cover a total area of 170 acres and are primarily located in states such as Maharashtra, Madhya Pradesh, Telangana, West Bengal, Gujarat, and Tamil Nadu.
According to a company statement, BSNL is evaluating four possible development models for land monetization, although specific details have not been disclosed.
Recent Conference on Land Development
In this regard, BSNL convened a conference on Wednesday, chaired by Robert J Ravi, Chairman and Managing Director (CMD) of BSNL, with Kalyan Sagar N, Director (HR), and Kashi Nath Jha, Deputy Director General (Asset Management) from the Department of Telecommunications (DoT), co-chairing the assembly.
The public sector telecom carrier has successfully raised approximately Rs 1,600 crore through the sale of its properties to various government departments and private entities. Looking ahead, BSNL aims to generate Rs 20,000 crore within the next four to five years through further land monetization efforts, as reported by ET in May.
Asset Availability and Future Plans
In May, Neeraj Mittal, Secretary of the DoT, addressed secretaries and chief secretaries regarding the availability of BSNL’s land assets. Following this initiative, BSNL has established a dedicated website that outlines available properties for outright sale, including assets from Mahanagar Telephone Nigam Limited (MTNL), across various regions of the country.
This strategic move aims to assist government organizations in acquiring properties through a streamlined scheme that facilitates direct sales from PSUs.
Importance of Land Monetization
Land monetization is viewed as a crucial strategy for revitalizing financially struggling telecom firms. In 2019, the government introduced a revival package amounting to Rs 69,021 crore for BSNL and MTNL, significantly reducing their operating costs. This was followed by an additional revival package of Rs 1.64 lakh crore in 2022, enabling BSNL and MTNL to achieve operational profitability starting from the 2020-21 fiscal year.
Moreover, in June 2023, the union cabinet approved the allocation of 4G/5G spectrum to BSNL with a total financial commitment of approximately Rs 89,047 crore through equity infusion.
