The central government is reportedly formulating a policy framework to enable the streamlined transfer of immovable assets, such as land and buildings, owned by telecom public sector undertakings (PSUs) like Bharat Sanchar Nigam Limited (BSNL), Mahanagar Telephone Nigam Limited (MTNL), and Indian Telephone Industries (ITI) to various ministries and departments.
This initiative is aimed at optimising public sector resources, accelerating asset monetisation, and supporting the restructuring efforts of debt-laden telecom PSUs. A high-level meeting chaired by the cabinet secretary on June 12, 2025 concluded with a directive to formulate comprehensive guidelines for the transfer process.
The forthcoming policy will focus on addressing procedural bottlenecks and establishing a streamlined mechanism to redeploy underutilised assets internally within the government, thereby reducing reliance on time-consuming bidding procedures.
The move gains urgency in the context of MTNL’s precarious financial condition. The company has defaulted on bank loans amounting to Rs 83.46 billion. In addition, MTNL has Rs 240.71 billion in sovereign-guaranteed bonds and Rs 11.51 billion in unpaid bond interest owed to the DoT. Further, as of March 31, 2025, its total liabilities stood at Rs 335.68 billion, with the sovereign-guaranteed bonds scheduled to mature by 2034.
