The government has expressed dissatisfaction with the slow progress of BSNL and MTNL land monetization progress by state-run telecom companies Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL), particularly in metro cities. Over the past few years, they have only generated Rs 550 crore from land monetization, significantly below the estimated potential of Rs 20,000 crore. This sluggish pace prompted the government to intervene, aiming to reduce the debt burden of both PSUs.
In a recent development, Cabinet Secretary Rajiv Gauba convened a review meeting with senior officials from BSNL and MTNL to assess the status of the monetization process. Officials have directed both companies to accelerate the process and submit a detailed report, including land parcels and reasons for delays or obstacles, by May 31st.
During the meeting, executives from the telecom PSUs highlighted issues related to taxation, including on unearned income, as well as various permissions required at the state and local levels, which have contributed to the slow progress. Management cited significant hurdles, such as obtaining permissions from state governments and local bodies, and determining the ownership status of assets.
Last year, the Department of Telecommunications informed the parliamentary standing committee on communications and IT that the Department of Investment and Public Asset Management had approved the monetization of BSNL assets worth Rs 18,200 crore and six MTNL properties valued at Rs 5,158 crore. Both PSUs were instructed to identify at least 10 properties in each of the 22 telecom circles and submit a detailed list with proper valuation based on current market rates.
However, despite these directives, the identification and valuation process has not been completed, even after almost eight months. It is worth noting that small land parcels valued below Rs 10 crore do not require approval from the group of ministers for sale, while those valued between Rs 10 crore and Rs 100 crore will need approval. Land valued at over Rs 100 crore falls under the purview of the Department of Public Enterprises for monetization.
The government’s focus on the revival of BSNL and MTNL is evident through these efforts, as it aims to streamline their operations and reduce their debt burden through efficient BSNL and MTNL land monetization progress.
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