DIPAM floats tenders to sell six assets of BSNL and MTNL

Starting the non-core asset monetisation process, the Department of Investment and Public Asset Management (DIPAM) floated tenders to sell six assets of state-run telecom firms Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) via its new asset monetisation portal. The government has registered for sale real estate assets of the telecom firms at a reserve cost of about Rs 1,100 crore, as per the reports. On November 18, shares of MTNL surged about 15% to Rs 20.70 in their greatest intraday increase since March 10, after it was registered that the government aims to improve the firm. MTNL's shares have so far achieved 30.4% in 2021. Installed in 1986 by the government, MTNL registered a loss of Rs 653 crore for the July-September quarter, surged by Rs 583 crore, 2020. Its overall debt reached Rs 25,615 crore at the end of the preceding financial year 2020-21. The sale of non-core assets like land parcels or real estate is being handled by the DIPAM and related to the pipeline of core assets generated for monetisation by the government think-tank NITI Aayog. The plan is to use the unused land parcels of state-owned entities and realise the price. The initiative is on the lines of the National Monetisation Pipeline (NMP) - where the government plans to monetise underutilised assets but will involve non-core assets. Image Source