MTNL Crisis: Finance Ministry Seeks Time-Bound Monetisation Plan — Profit Exclusive
The financial troubles of Mahanagar Telephone Nigam Ltd. have entered a critical phase, with the Finance Ministry now demanding a concrete, time-bound monetisation roadmap.
The directive follows the Ministry of Telecommunications' recent request for a fresh capital infusion to address MTNL's mounting liabilities.
"MTNL has been asked to accelerate the monetisation of its non-core assets and submit a clear plan to determine the next steps. Around 50 surplus assets have been identified across the country. The monetisation exercise is already underway and progressing well, a senior finance ministry official told NDTV Profit.
The proposed monetisation involves real estate assets—mainly land and buildings—belonging to both BSNL and MTNL in key metro locations like Mumbai and Delhi. MTNL is expected to follow through with the official monetisation process to raise much-needed funds and ease its debt burden.
MTNL is likely to submit a detailed blueprint, including asset valuations, to the Finance Ministry within the first half of the current fiscal year. An internal estimate pegs BSNL's total surplus assets at around ₹50,000 crore; not all of them may be monetised.
To support the process, the National Land Monetisation Corporation is actively assisting MTNL. Valuation exercises are currently underway, and a panel of valuers is being set up for different asset classes. Simultaneously, land clearance discussions with state and local authorities are said to be progressing steadily.
On the operational front, a significant shift in management is already in motion. BSNL has formally taken charge of MTNL's telecom operations under a new arrangement.
MTNL's total debt stands at Rs 33,568 crore, comprising Rs 24,071 crore in sovereign guarantee bonds, Rs 8,415 crore in outstanding dues to lenders, and Rs 1,151 crore in a DoT loan for bond interest servicing.
Despite the company's appeal last year for a haircut on its bank debt, lenders say there's been no further engagement after the finance ministry declined the proposal.
With limited revenue and no bailout in sight, asset monetisation now stands as the only viable path for MTNL to navigate its worsening financial crisis.
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