The Department of Telecommunications (DoT) has sought approval from an Empowered Group of Ministers for hiving off telecom towers and other infrastructure assets owned by Bharat Sanchar Nigam Limited (BSNL) into a wholly-owned subsidiary.
DoT has also sought the in-principle approval of EGoM for outsourcing the operations and maintenance (O&M), sales and marketing functions of BSNL?s proposed tower arm.
The total asset base of BSNL’s proposed tower unit is estimated at Rs 72.26 billion, while its equity holdings and reserves are estimated at Rs 40.76 billion. Of this, the equity component is pegged at Rs 30 billion while the balance Rs 10.76 billion will be transferred as reserves to provide a cushion to the new tower firm to raise debt.
Further, DoT has also sought the EGoM?s approval for constituting a project management office within BSNL for managing the transition. The entire exercise is aimed at monetising the tower assets owned by BSNL which is facing competition from other infrastructure providers.
