Government Plans MTNL Asset Sale Without Auction For State, Central Buyers | Profit Exclusive

The government has decided to do away with the auction process for the sale of MTNL assets to state and central government entities, according to people familiar with the matter.

Instead, these buyers will be offered the assets at simple valuation to speed up the process, the people said.

The move is aimed at cutting down the lengthy bidding and valuation procedures, which often take months to complete. MTNL asset monetisation will be carried out in phases, with proceeds used to repay mounting debt, the people said.

The sale of surplus land and buildings is part of a phased asset monetisation plan meant to help MTNL manage its rising debt. The company’s total liabilities stood at Rs 33,568 crore as of March 31. This includes Rs 8,346 crore in bank loans, Rs 24,071 crore in sovereign-guaranteed bonds, and Rs 1,151 crore in unpaid bond interest owed to the Department of Telecommunications.

Several public-sector banks, including State Bank of India, Bank of India, Punjab National Bank, UCO Bank, Punjab & Sind Bank, and Indian Overseas Bank, are among the listed lenders facing defaults on these loans.

MTNL’s financial condition has also affected vendors, employees, and pensioners, with payments and dues often delayed. The company’s shares remain volatile, frequently reacting to merger or revival news rather than performance.

Initial valuation of some MTNL assets has been pegged at Rs 6,000–7,000 crore, the people said, adding that the valuation surveys are underway in Delhi and Mumbai to accelerate the monetisation process.

Out of 280 non-core assets identified across MTNL and BSNL, 220 are set to be monetised, according to the people. The government is still consulting on the framework for private buyers.

Earlier this month, NDTV Profit had reported that the government initiated steps to streamline internal transfers of immovable assets held by telecom PSUs such as MTNL, BSNL and ITI. A high-level meeting chaired by the cabinet secretary concluded with a decision to draft new guidelines to facilitate transfers between ministries and departments. The aim is to support restructuring efforts, accelerate monetisation, and optimise the use of public sector resources.

While public sector buyers will now be able to acquire MTNL assets through direct transactions at simple valuations, the framework for engaging private buyers remains under consultation and will be finalised separately.