Shares of Mahanagar Telephone Nigam Ltd (MTNL) surged nearly 10% on Monday, coming into sharp focus after the government unlocked more than Rs 10,000 crore through asset monetisation at state‑owned telecom firms BSNL and MTNL, according to official sources.
The monetisation exercise is now complete, with about Rs 3,000 crore realised at BSNL and nearly Rs 7,000 crore at MTNL, primarily from the sale of land parcels, non‑core and unproductive assets across the country, including prime properties in Mumbai. Officials told NDTV Profit that the necessary paperwork is underway, and the impact of the asset realisation is expected to reflect on the companies' balance sheets over the next 30-45 days.
The proceeds will be used mainly to service MTNL's mounting debt and clear outstanding bank dues, a key objective under the Cabinet‑approved revival package for the telecom PSU. MTNL's total debt is estimated at Rs 34,000–35,000 crore, with defaults of more than Rs 8,500 crore to PSU banks.
An official said the asset monetisation drive is aimed at unlocking idle assets, maximising value for the exchequer and improving operational efficiency. The government has set further monetisation targets, with BSNL expected to monetise assets worth Rs 900 crore in FY26, while MTNL's FY26 target stands at Rs 4,573 crore. BSNL has already realised around Rs 1,350 crore from monetisation so far.
MTNL had defaulted on Rs 8,346 crore in bank loans, prompting concern from lenders during a May 9, 2025 meeting with finance ministry officials. In addition to the bank debt, MTNL was saddled with Rs 24,071 crore in sovereign-guarantee bonds and Rs 1,151 crore in unpaid bond interest to the Department of Telecommunications, bringing its total financial liabilities to Rs 33,568 crore as of March 31. The SG bonds are set to mature by 2034.
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