Finance Secy-led IMG approves sale of MTNL land parcels to BMC valued at nearly `1,960 cr

New Delhi: An Inter-Ministerial Group (IMG), headed by Finance Secretary, last month approved in principle the sale of five land parcels owned by state-run Mahanagar Telephone Nigam Ltd (MTNL) in Mumbai to Brihanmumbai Municipal Corporation (BMC) at a total valuation of nearly Rs 1,960 crore.

The land sale is part of the revival plan for MTNL and Bharat Sanchar Nigam Ltd (BSNL) which the Union Cabinet approved in 2019.

Through land monetisation, the Centre expects to fetch the government over Rs 20,000 crore which would also go into reducing the debt of both state-run telecom undertakings.

Sources said that the IMG authorised the Department of Telecommunications (DoT) to approach the Group of Ministers on Revival of BSNL/MTNL for approval to the sale of the reserved area within the identified plots.

The IMG has directed the DoT to communicate to the BMC that the transaction would be at market rates as per the General Financial Rules.

DoT has identified around 600 land parcels and buildings owned by MTNL and BSNL for outright sale to government departments, public sector undertakings, and government organisations. BSNL has an assets base spread over the country while MTNL has properties in Delhi and Mumbai, most of which are in prime locations.

The argument for land and building sales by MTNL is that nearly 85 per cent of their past workforce had taken voluntary retirement or retired, and that it no longer requires such extensive space.