Politics · India Bureau
Government panel backs MTNL asset monetisation plan to reduce debt burden
An inter-ministerial committee has recommended that state-owned telecom operator MTNL monetise surplus land and building assets valued at ₹1,100 crore to help ease its financial stress. The proposal now awaits clearance from a Cabinet-delegated authority.
LSN India ·
A government panel has proposed that MTNL divest surplus real estate holdings as part of efforts to strengthen the debt-laden telecommunications company's balance sheet. The inter-ministerial committee has recommended monetising land and building assets estimated at ₹1,100 crore, according to official sources familiar with the development.
The asset sale initiative forms part of a broader restructuring strategy aimed at improving MTNL's financial health. The company has long grappled with mounting losses amid intense competition in India's telecom sector and declining revenue streams from legacy services.
The proposal awaits approval from a Cabinet committee before it can be formally implemented. If cleared, the asset monetisation scheme would represent a significant step toward reducing MTNL's debt obligations and potentially freeing capital for operational investments or network modernisation.
MTNL, which operates across India with a substantial real estate portfolio accumulated over decades, has previously undertaken similar asset optimisation exercises. Industry analysts view such measures as necessary steps for the state-owned operator to remain competitive and financially sustainable in the rapidly evolving telecommunications landscape.