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The Government of India has announced new rules for sale of properties of BSNL, MTNL, ITI. The Committee of Secretaries has announced new rules to make it easier for BSNL (Bharat Sanchar Nigam Limited), MTNL (Mahanagar Telephone Nigam Limited), and ITI Limited to transfer or sell their unused properties. These new rules will allow these companies to sell their properties directly to other government departments and ministries without going through the auction process. This step is expected to help these companies quickly raise funds by selling their unused or surplus land and buildings.
How the Property Transfer Will Work
- Valuation at Market Price: The property will be sold at either the valuer’s rate or the circle rate, whichever is higher. This ensures that the government receives a fair price for the asset.
- Properties Above Rs 100 Crore: If the value of the property is more than ₹100 crore, then the final price will be based on the valuation done by the National Land Monetization Corporation (NLMC).
- Properties Below Rs 10 Crore: For properties worth less than ₹10 crore, BSNL, MTNL, and ITI Limited will jointly decide the market value.
Once the property is listed for sale on the government portal, all central government departments and ministries will get a Right of First Refusal. This means they will have the first opportunity to buy the property. They have 90 days to make a decision. If no government agency shows interest within 90 days, the property can then be sold to private buyers or non-government entities.
These guidelines are expected to help BSNL, MTNL, and ITI generate much-needed funds. Since these companies are struggling financially, selling unused assets will improve their cash flow and support their operations.
Recently, MTNL has defaulted on interest payment to Bank of India. State Bank of India has already classified MTNL Loan account as NPA.
According to a regulatory filing made by MTNL on April 19, the company has defaulted on loan repayments worth ₹8,346.24 crore. These defaults happened over a span of seven months, from August 2024 to February 2025. The bank wise default is as follows:
- ₹3,633.42 crore to Union Bank of India
- ₹2,374.49 crore to Indian Overseas Bank
- ₹1,077.34 crore to Bank of India
- ₹464.26 crore to Punjab National Bank
- ₹350.05 crore to State Bank of India
- ₹266.30 crore to UCO Bank
- ₹180.3 crore to an unidentified bank
Recently, Bharat Sanchar Nigam Limited (BSNL) has reported a net profit of ₹280 crore for the quarter ending March 2025, marking two consecutive profitable quarters for the first time in 18 years. In the previous quarter, BSNL had recorded a ₹262 crore profit.
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