Business · India Bureau
MTNL to offload Mumbai property to tax department for ₹891.53 crore
The state-run telecom company's board has approved the sale of its Powai real estate asset as it seeks to ease mounting financial pressures through non-core asset monetisation.
LSN India ·
Mahanagar Telephone Nigam Limited (MTNL) has secured board approval to sell its Powai property in Mumbai to the Income Tax Department for ₹891.53 crore, marking another step in the debt-laden company's asset monetisation strategy.
The transaction, greenlit during a board meeting on Thursday, reflects MTNL's ongoing efforts to shore up its finances amid persistent operational challenges. The telecom operator has been pursuing the sale of non-essential assets to generate liquidity and service its substantial debt burden.
The Powai property represents one of MTNL's more valuable real estate holdings in India's financial capital. The sale to a government department streamlines the transaction process while keeping the asset within the public sector ecosystem.
MTNL, which once dominated India's telecommunications landscape, has faced years of revenue erosion due to competition from private operators. The company has been undertaking several structural and financial measures to return to profitability, including workforce optimisation and infrastructure divestment initiatives.
The revenue from this property sale is expected to provide MTNL with immediate financial relief, though analysts note the company requires sustained operational improvements to stabilise its long-term financial health.