The Indian government has given final approval for the monetisation of high-value properties belonging to state-owned enterprises Bharat Sanchar Nigam Limited (BSNL), Mahanagar Telephone Nigam Limited (MTNL), and Rashtriya Ispat Nigam Limited (RINL). These assets, estimated to be worth ₹13,500 crore, will be brought to market by the National Land Monetisation Corporation (NLMC).
Prime Assets Across Major Cities
The extensive monetisation program encompasses 23 prime land parcels, commercial properties, and residential complexes, collectively spanning nearly 200 acres. These valuable assets are situated in key urban centers across India, including New Delhi, Mumbai, Bengaluru, Chennai, Goa, Kolkata, Hyderabad, and Visakhapatnam.
- Delhi: MTNL land parcels in premium areas such as Chanakyapuri, Hauz Khas, Vasant Vihar, and Netaji Nagar.
- Mumbai: BSNL properties in Santacruz West.
- Kolkata: BSNL properties in Madhyamgram near the airport and a 12.89-acre Telecom Factory in Alipore.
- Goa: A significant 45.58-acre BSNL parcel in Bambolim.
- Hyderabad: BSNL’s Regional Telecom Training Centre in Gachibowli, covering 21.98 acres, and other multiple locations.
- Bengaluru: 44.03 acres of ITI land at KR Puram.
- Visakhapatnam: 18.17 acres of RINL land at HB Colony, Maddilapalem.
NLMC's Role and Timeline
The NLMC has already initiated valuation exercises for these properties, appointing international property consultants and registered valuers to assess key sites like those in Chanakyapuri, Hauz Khas, and Vasant Vihar. Officials indicate that while the current valuation stands at ₹13,500 crore, actual proceeds could be higher due to the prime locations and strong market demand.
The corporation aims to monetise assets worth approximately ₹7,500 crore by the end of the current financial year. The remaining properties are slated for monetisation in the subsequent fiscal year, 2027-28.
This is not the NLMC's first foray into government asset sales. In March 2024, it successfully auctioned RINL's non-core properties in Visakhapatnam for ₹242.88 crore, exceeding the reserve price by nearly 16%. A BSNL property in Lucknow also saw a ₹226-crore transaction facilitated by the NLMC.
Strategic Fiscal Move
This latest move forms a critical part of the Centre’s broader strategy to generate non-debt capital receipts and maintain fiscal consolidation. The Union Budget for FY27 targets a fiscal deficit of 4.3% of GDP and has allocated ₹84,000 crore in non-debt capital receipts, with proceeds from such government asset monetisation contributing significantly to this goal.
The government is actively seeking to maximise returns from these assets, particularly as many BSNL and MTNL properties are located in high-demand, premium urban areas, which could command prices above current market valuations.