GoM to discuss ways of unlocking value of BSNL & MTNL property today: Media Report

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A Group of Ministers is likely to meet today to discuss ways of unlocking value of property held by BSNL and MTNL that may fetch them almost Rs 14,000 crore and revive profitability, sources said according too the PTI report.

"The GoM (on MTNL, BSNL revival) will meet tomorrow," an official source said. According to media report, BSNL is looking to get government's nod to monetise 82 land parcels across various locations and the action plan can fetch it a minimum Rs 13,500 crore.

BSNL has proposed to take up pilot project for 10 of these 82 land parcels. Only five out of the ten land parcels have been initially shortlisted for seeking GoM's nod.

MTNL has approached for in-principle nod of the GoM to start asset modernisation through renting and developing it real estate. The company expects that through this process it will be able to realise Rs 150-200 crore in short term and Rs 300-400 crore in the medium term.

BSNL had posted loss of about Rs 7,784 crore in financial year 2012-13. MTNL's net loss widened to Rs 5,321.12 crore in 2012-13 from Rs 4,109.78 crore in FY'12.

The GoM's previous decisions, including refund of fee for broadband wireless spectrum which cumulatively amounted to Rs 11,258 crore and bearing burden of pension paid to MTNL staff, have brought some much-needed relief to the ailing public sector units. Both the PSUs expects to turn profitable by 2017-18.

Dion Global Solutions Ltd.

Read more about: bsnl, mtnl, profitability, property
Story first published: Friday, January 31, 2014, 9:11 [IST]
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