Govt to begin PSU asset monetisation with MTNL

Govt to begin PSU asset monetisation with MTNL

The Government has identified real estate and land assets of telecom services provider Mahanagar Telephone Nigam Ltd (MTNL) to start the public sector undertaking (PSU) asset monetisation programme.

As per a report, MTNL's assets identified for sale will be auctioned through the online e-bidding platform set up by MSTC.

MTNL had identified assets including 36 acres in areas like Mulund, Vasai Hill, and Simpholi in Mumbai, shop-cum-office complexes in Delhi and residential quarters in Noida, which will be monetised in the first phase.

The Centre is developing a platform through MSTC for selling non-core assets of PSUs, which will be coordinated by the Department of investment and public asset management (DIPAM).

The asset monetisation programme is a part of the Rs 68,000 crore revival package for loss incurring telecom PSUs such as Bharat Sanchar Nigam Ltd (BSNL) and MTNL.

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MTNL, which provides telecom service in Mumbai and Delhi, reported a loss of Rs 641 crore in the October-December quarter of the current financial year.

The government may look at land assets of BSNL for sale if the MTNL assets auction becomes successful. Other PSUs such as Shipping Corporation of India and Bharat Earth Movers Ltd (BEML) may follow as carve out of their non-core assets has been made part of the preliminary information memorandum issued for strategic disinvestment, as per media sources.

In the case of state run companies not being divested, the government moves towards carving out non-core assets or de-merging and selling them to generate revenue for capital expenditure, reduce debt and improve efficiency.

DIPAM has advocated that the Central Public Sector Enterprises (CPSEs) should include asset monetisation and market capitalisation improvement in their memorandum of understanding (MoU) with respective ministries.

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Also read: Understanding the asset monetisation push

Also read: Govt to divest holdings in defence PSUs

Also read: Centre may match states’ divestment receipts

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