The central government has reportedly approved a new framework allowing government departments and organisations to acquire assets held by Bharat Sanchar Nigam Limited (BSNL), Mahanagar Telephone Nigam Limited (MTNL) and ITI Limited without undergoing an auction process.
A Committee of Secretaries, chaired by the cabinet secretary, has sanctioned a transfer mechanism that enables direct purchases at a “market rate” determined through a tiered valuation process.
Under the framework, BSNL, MTNL and ITI will set the price for assets valued below Rs 100 million. For assets above Rs 100 million, the Central Public Works Department (CPWD) will be responsible for valuation. Additionally, the National Land Monetisation Corporation (NLMC) will determine the value for assets worth more than Rs 1000 million.
Further, interested government entities must submit an expression of interest accompanied by a 2 per cent earnest money deposit. These organisations will also have a right of first refusal for
90 days from the asset’s listing on a designated government portal. If no government buyer comes forward during this period, the assets may then be offered to non-governmental parties.
