The central government is reportedly advancing plans to monetize non-core assets belonging to Mahanagar Telephone Nigam Limited (MTNL), a state-owned telecom provider currently burdened by substantial debt. The initiative aims to generate up to ₹6,000 crore this financial year, with the funds earmarked to help repay a portion of the company's escalating liabilities.
Addressing MTNL's Financial Strain
Officials familiar with the matter indicate that assets valued at up to ₹6,000 crore have been identified, and the monetization process is already in an advanced stage. This move comes as MTNL's total liabilities climbed to approximately ₹40,000 crore in the fiscal year 2026. The company has faced challenges in meeting loan repayments to several public sector banks, including State Bank of India, Punjab National Bank, Bank of India, and Union Bank of India.
In FY26, MTNL reported a net loss of ₹3,102 crore against a total income of ₹1,469 crore. The company previously raised ₹419 crore during the same year through the sale of two properties: one in Mumbai to Nabard and another in New Delhi to the Bihar government.
Asset Identification and Sales Process
The monetization strategy includes a pipeline of MTNL properties slated for sale over the next two years. Currently, five MTNL properties located in Mumbai, collectively valued at around ₹4,000 crore, have already secured approval from the Alternative Mechanism (AM). The AM is a Union Cabinet-authorized body responsible for clearing such proposals.
Furthermore, an inter-ministerial group, comprising representatives from the Department of Public Enterprises under the finance ministry and the Department of Telecommunications from the communications ministry, recently recommended an additional tranche of MTNL assets worth ₹1,100 crore for Cabinet approval.
The National Land Monetisation Corporation (NLMC), a specialized asset-sale agency established by the government in 2022 under the finance ministry, will oversee the entire monetization process. After receiving Cabinet approval, the NLMC will engage with prospective buyers. Properties sought by other government entities may be sold via private placement, while those without such interest will be put up for auction to private-sector buyers. The NLMC is also responsible for appointing independent agencies to value the properties before jointly determining reserve prices with the government.